| Abstract [eng] |
Currently, investing in derivative financial instruments, especially those related to sustainable financial investments, is highly popular not only in Lithuania in world also. This growth is strongly supported by significant changes at the highest level, particularly at the European Union level. In 2021, the European Commission adopted a regulation establishing the action plan for sustainable growth financing (EU, 2021). The primary objective of this plan is to direct capital flows towards sustainable investments, a crucial step in achieving the EU and global governments' goal of achieving net-zero carbon emissions by 2050. The most crucial aspect of this investment is related to ESG (Environmental, Social, Governance) conditions. ESG conditions become essential not only from an environmental perspective but also from social and governance perspectives. Investors must be informed about what constitutes sustainable derivative financial instruments and how they align with these conditions. This is necessary to create a growing economy detached from the use of fossil fuels. Author Baker (2022) examines how derivative financial instruments meet ESG conditions and how risks associated with derivative financial instruments complying with how ESG conditions are managed. Understanding the composition of these financial instruments and their impact on sustainability in the short and long term allows for more effective risk management. The analysis in the study will focus on companies' results and the use of derivative financial instruments to reveal whether companies actively implement sustainability principles. This analysis is highly relevant in today's context, where investors increasingly value companies' commitments to sustainability. The evaluation will be conducted based on projected company results, using multiple regressions to discern the impact of sustainability. Ultimately, it is crucial to note that financial instruments must not only be profitable but also environmentally friendly. This aligns with the interests of not only the present but also future generations, aiming for long-term ecological and financial sustainability. |
