This systematic literature review and research agenda examine the role of sustainable finance and ESG (Environmental, Social, and Governance) factors in the financial sector. The study analyzes 80 studies published between 2011 and 2021, identifying four main thematic areas: (1) a shift in value creation, (2) green bonds, (3) ESG ratings and performance, and (4) sustainable finance, banking, and financial risks. The findings highlight the growing interest in sustainable finance, driven by increasing awareness of sustainability issues and the need for financial systems to align with environmental and social goals. However, the field remains fragmented, with challenges in defining sustainable finance, ensuring transparency, and addressing greenwashing. The study also emphasizes the importance of ESG factors in financial decision-making, noting that while ESG ratings vary among agencies, they can influence corporate performance and investor behavior. Additionally, the research discusses the role of green bonds in financing sustainable projects and the risks associated with climate change and energy transitions. The study concludes that sustainable finance is essential for achieving long-term economic and environmental goals, but further research is needed to develop effective frameworks and policies that promote sustainable investment practices. The paper outlines future research directions, including the integration of ESG factors into financial models, the impact of AI on sustainable finance, and the development of policies to support sustainable financial systems.This systematic literature review and research agenda examine the role of sustainable finance and ESG (Environmental, Social, and Governance) factors in the financial sector. The study analyzes 80 studies published between 2011 and 2021, identifying four main thematic areas: (1) a shift in value creation, (2) green bonds, (3) ESG ratings and performance, and (4) sustainable finance, banking, and financial risks. The findings highlight the growing interest in sustainable finance, driven by increasing awareness of sustainability issues and the need for financial systems to align with environmental and social goals. However, the field remains fragmented, with challenges in defining sustainable finance, ensuring transparency, and addressing greenwashing. The study also emphasizes the importance of ESG factors in financial decision-making, noting that while ESG ratings vary among agencies, they can influence corporate performance and investor behavior. Additionally, the research discusses the role of green bonds in financing sustainable projects and the risks associated with climate change and energy transitions. The study concludes that sustainable finance is essential for achieving long-term economic and environmental goals, but further research is needed to develop effective frameworks and policies that promote sustainable investment practices. The paper outlines future research directions, including the integration of ESG factors into financial models, the impact of AI on sustainable finance, and the development of policies to support sustainable financial systems.