Zoltan Andras Daniel (p), Viktoria Monda

Dorottya Edina Kozma

ESG (Environmental, Social, Governance) investing has garnered significant attention in financial markets as sustainability considerations increasingly influence investor decision-making. The growing emphasis on responsible investing stems from both regulatory pressures and shifting investor preferences, as stakeholders seek to align their portfolios with ethical and environmental standards. However, a key question remains: do ESG funds offer competitive financial returns compared to traditional investment funds?
This paper aims to provide a comprehensive analysis of the financial performance of ESG funds relative to their conventional counterparts. Using secondary data sources such as Morningstar, MSCI ESG Ratings, and Bloomberg databases, the research employs time-series analysis to examine the historical returns of sustainable investment funds. The study explores whether ESG-oriented funds consistently generate comparable or superior returns while considering factors such as risk-adjusted performance, volatility, and long-term market trends. Additionally, it investigates how sustainability-driven strategies influence asset allocation and portfolio resilience in various economic conditions.
By assessing both the financial viability and potential trade-offs of ESG investments, this research contributes to the broader discourse on sustainable finance. The findings will provide valuable insights into whether ESG funds can serve as both financially sound and socially responsible investment vehicles. Furthermore, the study seeks to highlight emerging trends in ESG investing, offering practical implications for asset managers, institutional investors, and policymakers navigating the evolving landscape of sustainable finance.

Laeeq Razzak Janjua, Dorottya Edina Kozma (p)

Zoltan Andras Daniel

Political system determines the growth and sustainability dimensions for the state. The aim of writing this research is to examines the convergence of green finance, political frameworks, and sustainable growth in the Sub-Saharan African region, employing data from 2000 to 2024. This research examines the influence of different political system indices such as Electoral Democracy Index, Liberal Democracy Index, Participatory Democracy Index, Deliberative Democracy Index, and Egalitarian Democracy Index on the advancement of green finance and its contribution to fostering green growth using panel data analysis. In light of the urgent environmental issues in Sub-Saharan Africa, green money has become an essential instrument for sustainable development. The study examines the impact of various democratic frameworks, as indicated by the aforementioned indices, on the efficacy of green financing projects and their capacity to promote ecologically sustainable economic growth. The research integrates political system indicators with green finance data to elucidate the policy processes and governance frameworks that optimally facilitate green growth in the region. The findings of this study enhance the comprehension of the overarching political and economic frameworks influencing green financing, providing significant recommendations for policymakers seeking to harmonize democratic governance with sustainable development objectives in Sub-Saharan Africa.

Zoltan Andras Daniel (p), Tamas Molnar

Dorottya Edina Kozma

Sustainable finance is playing an increasingly critical role in addressing economic and environmental challenges, particularly in regions where underdevelopment and regional disparities hinder sustainable growth. The objective of this research is to develop a theoretical framework for Green Dedicated Investments (GDI) at the national level and enterprise-level Green Dedicated Investments (eGDI), providing a systematic approach to measuring sustainable investments and analyzing their impact at both macroeconomic and microeconomic levels.

The GDI indicator quantifies the volume of green investments flowing into or out of a country, offering insights into how financial resources contribute to national sustainability goals and economic convergence. Meanwhile, the eGDI indicator measures the proportion of sustainable investments within individual companies, allowing for a firm-level assessment of commitment to ESG principles. These indicators serve as valuable tools in understanding the role of green finance in fostering economic development, particularly for small and medium-sized enterprises (SMEs), which often face barriers in accessing sustainability-focused funding.

The research utilizes international and domestic secondary data sources to construct a methodological framework for assessing and directing green investments more efficiently. The findings suggest that the application of GDI and eGDI indicators enhances the ability to identify investment patterns, evaluate their effectiveness in promoting environmental and social sustainability, and mitigate regional economic inequalities. By integrating these indicators into green finance strategies, policymakers and investors can make more informed decisions to support sustainable economic development and drive the transition towards a low-carbon economy.

Dorottya Edina Kozma (p)

Katalin Liptak

Green finance is part of a sustainable development strategy that helps to close the regional gaps but its application varies widely from one place to the next. It involves financial investments and instruments for environmentally sustainable projects. This includes instruments like green bonds, sustainability-linked loans, and impact investing to support climate resilience, energy efficiency and resource conservation. Green finance is a tool to shift the financial sector towards low-carbon and sustainable development by integrating environmental, social and governance (ESG) issues into financial decision making. To address regional inequality and global environmental issues, governments, financial intermediaries, and private investors are key to scaling green finance. In the paper, the author aims to present the emergence and advance of green finance in Europe, especially in the V4 in a comparative analysis. It presents the green finance characteristics, similarities and differences between the four countries.
Green finance in the Visegrad Four countries (Czech Republic, Hungary, Poland, and Slovakia) is gradually becoming a reality as they move towards sustainable economic development. Even though traditionally they have depended on fossil fuels, particularly coal, they are increasingly turning to green finance products to support the shift towards a low-carbon economy. The region's governments and financial institutions are issuing green bonds, sustainable investments, and climate-related financial policy. Poland, for example, was the first in the world to issue a sovereign green bond in 2016, setting a precedent for the region. Slovakia and the Czech Republic have also started to include environmental issues in financial legislation, and Hungary has initiated green mortgage bonds and sustainability-linked lending programs.
However, there are obstacles to overcome, including loopholes in regulations, underemployment of the private sector, and a greater public awareness need. EU funding spurs green projects, but what each nation needs to do is fill in these gaps with long-term sustainability efforts. As Visegrad Four continue to align with the EU's Green Deal objectives, green finance can be expected to increase even further. Financial incentives will have to be reinforced, transparency increased, and cross-border cooperation encouraged to accelerate the green transition in the region.

Katalin Liptak (p)

Zoltan Andras Daniel

Sustainability and environmental protection are key issues today, and most economies are paying particular attention to these issues. For rural areas, a new approach to labour market processes is an excellent opportunity to move towards sustainability. While environmental sustainability, renewable resources and their growing role are often discussed, the sustainable labour market is less so. Labour market sustainability can be approached from several angles. Much of the literature focuses on direct job creation and only superficially on indirect job creation. Defining green jobs is not an easy task, as the literature is not yet consistent. Green jobs are jobs that reduce the environmental impact of businesses and economic sectors to an ultimately sustainable level. This definition refers to work in agriculture, industry, services and public administration that contributes to preserving or restoring the quality of the environment while meeting the criteria of decent work, decent wages, safe conditions, workers' rights, social dialogue and social protection. In the presentation I will describe the labour market situation in disadvantaged areas in Hungary and the opportunities for break-outs that can be improved by strengthening the role of non-profit organisations. Among active policy instruments, new job creation is the best solution, but also the costliest. In Hungary, the green labour market in rural areas is still in its infancy and there are many opportunities for its development.