A Critique on Unifying Sustainable Finance, Artificial Intelligence and Responsible Investing

Sustainable finance recognizes the critical role of economic, social, and environmental factors in shaping financing and investment initiatives. By aligning financial objectives with social and environmental imperatives, sustainable finance promotes long-term value creation and reshapes the financial subjectivity of society. Going beyond traditional finance, sustainable finance, guided by ESG (Environmental, Social, and Governance) criteria, fosters societal inclusivity and promotes social equity. While the social purpose is central to sustainability, the financial system remains inadequate in fully achieving this goal. At the same time, disruptive technologies such as artificial intelligence (AI), machine learning, and algorithmic trading are becoming integral to financial decision-making and societal well-being. Their interplay is increasingly defined by impact mandates and accountability. In this chapter, we examine the significance of sustainable finance and critique its nexus with AI, exploring the extent to which AI can both disrupt and revolutionise responsible investment in the financial sector.