In the financial sector, sustainable finance has become a crucial paradigm that emphasises the necessity of striking a balance between social and environmental responsibility and profitability. The idea of sustainable finance is examined in this essay along with its ramifications for investors, financial institutions, and society at large. Sustainable finance attempts to generate financial returns while promoting long-term sustainable development by incorporating environmental, social, and governance (ESG) considerations into financial decision-making. The first section of the paper gives a general review of sustainable finance, going over its history and essential ideas. The incentives behind sustainable financing are then examined, emphasising the significance of corporate social responsibility as well as investors' increased knowledge of environmental and social issues. Subsequently, the paper delves into the obstacles and prospects linked to sustainable finance. These include the requirement for standardised ESG measurements and the possibility of sustainable investments surpassing traditional ones in the long term.

: Sustainable finance, profitability, social responsibility, ESG factors, financial decision-making,