In: Finance
Explain how Sustainable Finance may mitigate the negative impact of climate change and outline two reasons a company may choose to issue green bonds.
Sustainable financing aims at raising funds for investment projects which have a positive impact on the environment by promoting sustainable business model. The green financing aims to reduce the negative impact of climatic changes by managing strategic decisions based on inadequate governance processes.
The company issues green bonds to finance projects that promote profitability and also contribute to environmental sustainability.
The green bonds help in funding investment opportunities that creat sustainable business model that promotes long term value creation.