HOW DO GREEN INVESTMENTS AFFECT A COMPANY’S FINANCIAL STABILITY?

Authors
  • Berdaliyev Xaydarqul Kattaboyevich

    Associate Professor (Docent), University of Applied Sciences (1 Gavhar Street, Chilonzor District, Tashkent city)

    Author

Keywords:
Green investments, ESG, financial stability, sustainable development, corporate strategy, environmental economics, Uzbkistan.
Abstract

This article provides a comprehensive analysis of the impact of green investments—capital allocations based on environmental, social, and governance (ESG) criteria—on the long-term financial stability of companies. The study examines both the positive effects and limiting factors of green investments from the perspectives of operational cost dynamics, access to capital, risk management efficiency, brand equity, and market competitiveness. Taking into account the economic context of Uzbekistan, the financial implications of implementing ESG strategies for national companies are evaluated. In conclusion, when properly implemented, green investments significantly strengthen a company’s financial stability and become a source of competitive advantage.

References

1. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.

2. Bloomberg Intelligence. (2023). ESG assets may hit $53 trillion by 2025. Bloomberg Professional Services.

3. Climate Bonds Initiative. (2023). Green Bond Market Summary. London: CBI.

4. Deloitte Global. (2022). The Deloitte Global 2022 Gen Z and Millennial Survey. Deloitte Touche Tohmatsu Limited.

5. Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Boston: Pitman.

6. Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233.

7. IEA – International Energy Agency. (2023). Energy Efficiency 2023. Paris: IEA.

8. Interbrand. (2023). Best Global Brands 2023. Interbrand Group.

9. Khan, M., Serafeim, G., & Yoon, A. (2016). Corporate Sustainability: First Evidence on Materiality. The Accounting Review, 91(6), 1697–1724.

10. Markowitz, H. (1952). Portfolio selection. Journal of Finance, 7(1), 77–91.

11. Morningstar. (2023). Sustainable Funds U.S. Landscape Report. Morningstar Research Services.

12. MSCI. (2022). ESG and the Cost of Capital. MSCI ESG Research.

13. Moody's ESG Solutions. (2023). ESG and Credit Risk: A Growing Connection. Moody's Corporation.

14. Nielsen. (2023). Global Sustainability Report: Consumer Choice and the Climate. The Nielsen Company.

15. Decree of the President of the Republic of Uzbekistan dated October 4, 2021, “On the Sustainable Development Goals of the Republic of Uzbekistan until 2030.”

16. Wernerfelt, B. (1984). A Resource-Based View of the Firm. Strategic Management Journal, 5(2), 171–180.

Downloads
Published
2026-04-23
Section
Articles
License
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

HOW DO GREEN INVESTMENTS AFFECT A COMPANY’S FINANCIAL STABILITY?. (2026). Eureka Journal of Business, Economics & Innovation Studies, 2(4), 183-192. http://eurekaoa.com/index.php/6/article/view/869