This study presents an in-depth analysis of climate finance within the agricultural sector and its pivotal role in fostering sustainability in agrarian economies. It investigates the availability, accessibility, challenges, and effective utilization of climate finance. Climate finance emerges as a critical resource for establishing funding mechanisms and incentives that support sustainable agricultural practices, bolstering resilience and mitigating greenhouse gas emissions. Secondary sources, including books, journals, articles, policy documents, and reports, provide the data for this research. The findings of this study underscore a vital revelation: private investors play a crucial role in augmenting climate finance, thereby facilitating the transition to sustainable agriculture. It is evident that their participation significantly enhances the financial support available to farmers and agricultural stakeholders. Furthermore, the study reveals that a combined effort from both government and private investors has yielded considerable progress in advancing climate finance investment within India’s agricultural sector. This collaborative approach has proven instrumental in addressing the challenges faced by those seeking climate finance in agriculture. It has effectively increased awareness, streamlined application processes, and strengthened institutional support, ultimately driving the adoption of sustainable practices. The implications of this research extend to policymakers, agricultural institutions, and financial organizations, highlighting the pivotal role of private investors in improving climate finance accessibility. The future scope of this research suggests that the effective utilization of climate finance has the potential to catalyse the widespread adoption of sustainable agricultural practices. The study emphasizes the importance of channelling climate finance through a variety of stakeholders to maximize its utility and make use of all available resources and instruments.

Despite numerous global initiatives, such as the Sustainable Development Goals (SDGs) and the implementation of environmental, social, and governance (ESG) metrics aimed at mitigating climate change, promoting social welfare, and addressing a variety of other causes, progress has been significantly slower than expected, particularly in developing economies. Thus, we attempted to link corporate ESG to sustainable development. It was also investigated whether ESG contributes to a reduction in corporate risk. Using panel data and the Generalized Method of Moments (GMM) technique, we examine the relationship between ESG scores and important financial risk indicators such as systematic risk (beta), stock price volatility, unsystematic risk, and the cost of capital (WACC). The findings show that corporations place a disproportionate emphasis on governance (G) rather than environmental (E) and social (S) characteristics. ESG and G governance were also found to be statistically significant predictors of financial risk. This disparity shows that companies may be using high governance scores to conceal underperformance in environmental and social issues, raising worries about greenwashing and superficial compliance. As a result, their contributions to SDGs such as affordable and clean energy (SDG 7), climate action (SDG 13), and reduced inequalities (SDG 10) are minimal. The findings highlight the need for a more open, balanced, and integrated ESG approach, one that not only promotes sustainable development but also improves long-term financial resilience.