Abstract

This paper investigates sustainable finance's strategic role in driving brand diversification amidst growing environmental, social, and governance (ESG) considerations. The nexus of sustainability and brand differentiation has already been thoroughly researched, but its impact from the standpoint of sustainable finance practices lacks direction. Using a qualitative method approach based on interviews with industry experts, we identify domains of authenticity, transparency, and stakeholder engagement that are central to illuminating the brand characteristic influences by using sustainable finance. The results show that sustainable finance increases brand image and competitiveness and enhances customer loyalty through effective communication with consistent reporting. This can help bolster their market position by integrating new stakeholders and effectively countering the challenges that they bring with them. Such practices have not been widely included in corporate strategy; this study thus represents an attempt to do so by focusing on brand differentiation as a driver of sustainable finance, a new direction derived from the relevant literature. This would help explore the effects across various industries longitudinally on brand equity.

Keywords: Sustainable Finance, Brand Differentiation, Ethical Investing, Environmental Social and Governance (ESG) considerations

How to Cite:

Afaq, A., Bushra, B., Chaudhary, M. & Sahai, S., (2025) “Sustainable Finance as a Catalyst for Brand Differentiation: A Qualitative Approach”, Australasian Accounting, Business and Finance Journal 19(4): 5, 87–114. doi: https://doi.org/doi.org/10.14453/aabfj.v19i4.05

Rights: In Copyright