Over the past decade, sustainable finance has become a prominent feature of global finance around the world. Green and social finance which target investments with specific and measurable environmental or social objectives witnessed fast expansion in recent years.

According to Bloomberg, more than $30 trillion assets under management globally in 2018 are now subject to some form of environment, social and governance framework.

The rapid growth of green and social finance, particularly from the private sector, can be sustained since it is increasingly driven by financial considerations, besides the desire to achieve sustainable development goals.

Three major factors are driving the development of green and social finance. First, in recent years, the preferences of investors, managers, shareholders, clients, and society at large, shifted markedly toward the UN's Sustainable Development Goals.

Since COV- ID-19 had a disproportionate impact on the poor, it may have a long-term impact on the preference of investors and stakeholders.

A version of this article appears in the print on May 24 2021, of The Himalayan Times.