Global climate change, carbon reduction policies, and the emergence of environmental sustainability as an economic imperative have fundamentally transformed the structure of the financial sector. Green finance integrates environmental benefits into financial decision-making processes through instruments such as green bonds, sustainability-linked loans, and ESG-focused funds, while sustainable investment strategies increase the importance of environmental (E), social (S), and governance (G) criteria in investor preferences. The aim of this study is to examine the theoretical foundations of green finance and sustainable investment strategies, along with current international trends and their applications in Turkey.

The research was conducted by evaluating academic studies published between 2020 and 2025 through qualitative content analysis. The findings show that green finance instruments are rapidly diversifying on a global scale and ESG awareness is increasing, but problems such as greenwashing risk and lack of standard reporting persist. Specifically for Turkey, it was determined that sustainable finance literacy and investor perception strongly influence green investment behavior.

In conclusion, green finance is gaining increasing importance within the financial system, but it is evident that data infrastructure, reporting standards, and policy incentives need to be developed in Turkey. The findings also emphasize the importance of a comprehensive policy approach for the widespread adoption of sustainable investment strategies.