The path to sustainable growth: assessing the role of financial and non-financial players under a double materiality perspective

This thesis highlights the rising significance of sustainable finance as an essential mechanism for achieving environmental and social goals, underpinned by the understanding that public finance alone is insufficient to meet global sustainability targets. The research underscores that each actor in the transition toward sustainability has distinct roles and responsibilities, making it crucial to mobilize private resources to support sustainable investments. Through a collection of published and draft papers, this thesis explores sustainable finance's multi-dimensional landscape, combining regulatory and sector-specific analyses, case studies, and impact assessments. The first section lays a theoretical and regulatory foundation, providing an extensive literature review and examining key economic theories that validate sustainable finance's integration into decision-making processes. The second section delves into the contributions of financial and non-financial actors, distinguishing between “greening by” activities that facilitate sustainability in other sectors (e.g., banks) and “greening of” activities that directly minimize environmental impacts within organizations. Finally, the third section adopts an “outside-in” perspective, assessing how external ESG factors impact corporate decisions, focusing on liquidity management, debt structuring, and the interconnectedness between sustainability practices and financial outcomes. This work sheds light on the roles of various stakeholders in sustainable finance, particularly banks and the energy sector, and evaluates public-private partnerships in advancing social housing through models like SROI. The findings highlight the strategic adjustments businesses make in response to regulatory changes and the broader role of sustainable finance in shaping resilient economies.