Unlocking Green Finance: The role of Pension fund assets, Investment regulations and Environmental advocacy in SADC

This paper explored the critical role of pension fund assets in driving green finance within the Southern African Development Community (SADC). Utilizing panel data from South Africa, Botswana, Namibia, and Zimbabwe from 2012 to 2022, the study examined the interactive effects of pension fund assets, investment regulations, and environmental advocacy on green finance investments. The findings reveal a significant positive relationship between pension fund assets and green investments, suggesting that larger pension funds are better positioned to contribute to green finance. Conversely, stringent investment regulations were found to have a negative impact, limiting the allocation of funds towards green investments. While environmental advocacy showed a positive correlation with green finance, its effect was statistically insignificant. The study concludes that to enhance the role of pension funds in green finance, there is a need for regulatory reforms that strike a balance between protecting investors and promoting sustainable investments. Additionally, the potential influence of environmental advocacy should be harnessed to foster greater commitment to green finance. The paper provides valuable insights for policymakers and industry stakeholders aiming to optimize the contributions of pension funds to sustainable development in the SADC region.