Sustainable Capital Market: A Mini-Review

Sustainable finance and investing have become the key factors of business survival, as an increasing number of countries are adopting sustainability criteria to manage their capital markets. Nevertheless, there are still many gaps in the scholarly literature on the role of sustainable finance and corporate social responsibility in the modern capital markets. Based on a thorough literature review of 23 scholarly articles, this paper explores the current state of capital markets in a wide range of countries, showing that virtually all of them have adopted sustainability ratings to determine the companies that are more ethical, trustworthy, and stable in the long run. Furthermore, the paper provides many insights into the topics of socially responsible investing, sustainable public finance, the government’s role in environmental policies, and the role of sustainability in stock market ratings.