Abstract:
Purpose – The purpose of this paper is to demonstrate that the relatively new concept of sustainable finance, although very apt and timely, needs to address many major issues for it to be meaningful and if it is to achieve its desired objectives.
Design/methodology/approach – The study identifies some of the major issues that need to be clarified and addressed including: defining the kind of sustainability that is envisaged; examining issues relating to the use of high-discount rates and its compatibility with the goals of sustainability; the case of excessive pollution due to adverse selection, moral hazard and lobbying; and specialisation and path dependent systems that are detrimental to future production.
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