Financial Literacy in Promoting Sustainable Finance

DOI

10.2991/978-94-6463-374-0_31How to use a DOI?

Keywords

FLaSE Model; Financial Literacy; Sustainable Finance; Determinants of financial literacy

Abstract

In an era marked by heightened environmental awareness and concerns about the long-term health of our planet, sustainable finance has gained significant traction as a means to align financial activities with environmental, social, and governance (ESG) principles. At the heart of this transformation lies the pivotal role of financial literacy, empowering individuals and institutions to make responsible, ethical, and sustainable financial decisions. Drawing on a comprehensive review of existing literature and empirical evidence, we dissect the various ways in which financial literacy influences sustainable finance with its intricate symbiotic interplay between them, unravelling how financial literacy plays a vital role empowering individuals, institutions, and communities to advance sustainable, responsible, and ethical financial decisions. The findings of this research reveal that a straight correlation exists amid financial literacy and adoption of sustainable financial practices basis the historical literature review in the subject of study. Persons with advanced levels of financial literacy are more likely to capitalize in sustainable funds, make eco-conscious consumption choices, and engage in responsible savings practices. Moreover, we also propose, a linear regression equation, a mathematical model called as FLaSE Model that determines the efficacy of financial literacy in promoting sustainable finance. Finally, we discuss as how this synergy amongst the financial literacy and sustainable finance serves as a linchpin that empowers individuals to become active participants in battle against climate change & promotion of sustainable practices that respects and supports the principles of ESG.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - A. Ruban Christopher
AU  - A. R. Nithya
PY  - 2024
DA  - 2024/02/20
TI  - Financial Literacy in Promoting Sustainable Finance
BT  - Proceedings of the 3rd International Conference on Reinventing Business Practices, Start-ups and Sustainability (ICRBSS 2023)
PB  - Atlantis Press
SP  - 353
EP  - 363
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-374-0_31
DO  - 10.2991/978-94-6463-374-0_31
ID  - Christopher2024
ER  -