THE ECONOMICS OF SUSTAINABILITY: THE IMPACT OF CLIMATE CHANGE ON INVESTMENT STRATEGIES
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Sustainability has become a critical factor in economic decision-making as the effects of climate change become increasingly apparent. The financial sector, in particular, is undergoing a transformation in how it evaluates investments, with growing interest in strategies that account for environmental risks and opportunities.Abstrak
This paper examines the evolving relationship between climate change and investment strategies within the framework of sustainable economics. Climate change has emerged as one of the most pressing global challenges, prompting shifts in how investors assess risks and allocate capital. We explore how sustainable investment strategies are evolving to address these risks, focusing on green finance, renewable energy, and climate-conscious funds. The study utilizes quantitative data from various investment portfolios and qualitative insights from financial experts to understand how climate-related risks and opportunities are shaping modern financial practices. This research demonstrates that climate-conscious investment strategies offer long-term financial resilience but face limitations in terms of policy unpredictability and market volatility. Future research should explore the integration of climate data into financial modeling and the role of governmental regulations in accelerating the transition to sustainability.
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