Abstract: Financial Intermediation, Sustainable Banking and Marketing

Abstract:
Mauritius is undergoing a strategic transition from its historical role as an offshore financial centre toward positioning itself as a climate-smart gateway for sustainable finance in Africa. This review article examines how a Small Island Developing State (SIDS) with high climate vulnerability, concentrated corporate own ership, and sophisticated financial regulation is integrating environmental, social, and governance (ESG) considerations into its economic and financial architecture. Drawing on policy documents, regulatory frame works, multilateral reports, and ESG disclosure data, the article analyses Mauritius’ governance landscape, f inancial regulatory evolution following FATF grey-listing, climate risk exposure, and the development of sustainable finance instruments, carbon markets, and capital-market infrastructure. Particular attention is given to the Stock Exchange of Mauritius, ESG disclosure maturity, and the implications of family-controlled conglomerates and low market liquidity for ESG adoption. The findings highlight a distinctive ESG profile in which governance disclosure is relatively strong, while environmental and social reporting remain limited and misaligned with national climate ambitions. The article argues that Mauritius’ concentrated ownership structure simultaneously constrains market-driven ESG transformation and creates the potential for rapid sys tem-wide change if regulatory leadership and private-sector commitment converge. The Mauritian case offers broader lessons for island economies and emerging markets seeking to align financial intermediation, climate resilience, and sustainable development objectives.