Article Series: Limits of Green Finance: A literature survey in the context of green bonds and green loans

In 2021 Professor David Gilchrist and Dr. Rui Zhong from UWA Business School, The University of Western Australia, and Dr. Jing Yu from The University of Sydney Business School, published a systemic literature survey on the factors and potential benefits of corporate engagement in environmentally responsible practices in the context of green bonds and green loans. In response to the rapid development of green finance the ADGM Academy Research Centre engaged Dr. Yu to write a summary of the research.

  • Environmentally responsible practices not only enhance shareholder value but also benefit non-financial stakeholders.
  • Green bonds and loans have experienced significant growth in the past decade. While there is extensive research on the corporate green bond market, there is still a knowledge gap regarding the drivers and consequences of green loans.
  • There is a need for global efforts to adopt consistent definitions of corporate green activities and reconcile multiple ESG (Environmental, Social, and Governance) rating practices, with a focus on industry-specific activities.


Dr. Jing Yu,
Associate Professor in Finance,
The University of Sydney Business School