Definition ∞ Sustainable finance refers to financial services and investment decisions that consider environmental, social, and governance factors alongside traditional financial returns. Its aim is to promote long-term economic stability and contribute to sustainable development. This approach guides capital towards projects and companies that exhibit responsible practices. It supports a transition to a more equitable and ecologically sound economy.
Context ∞ The intersection of sustainable finance and digital assets is gaining prominence, particularly as blockchain technology offers new mechanisms for tracking environmental impact and facilitating green investments. Innovations like tokenized carbon credits and decentralized platforms for impact investing align with sustainable finance goals. News often covers initiatives that leverage blockchain for transparency in supply chains or for funding renewable energy projects, reflecting a growing alignment between digital assets and environmental responsibility.
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