We live in a challenging world which no country can handle alone. The 2030 Agenda for Sustainable Development of the United Nations is a development plan and a global platform made to solve today's most important economic, social and environmental challenges. Sustainable development is a development which meets the requirements of the present without jeopardizing the opportunities of the future generations. European politics contributed to the overcoming of post-war poverty and hunger, by creating a field of liberal democracy which was an unprecedented prosperity for European citizens. Large investments in research and innovation have encouraged the development of new technologies and models which enable a more sustainable use of resources and the application of digital solutions. Sound budgets and modern economy are crucial, whereas the progress in balancing fiscal policy and reforms have reduced debt levels and boosted job creation. Financial institutions have an extremely important influence on the financial market, as well as the social groups in which they operate. Sustainable financing is crucial for mobilizing the funds needed to meet the EU's commitments to the green goals. More and more companies are turning towards more socially responsible businesses, focusing on environmental protection, social policy and the quality of corporate management. The purpose of this paper is to explain the standards of environmental protection, social responsibility and management and to show the impact of taxonomy and green financing on the operations of institutional investors on a global and national level. Institutional investors increase the competitiveness and efficiency of financial systems. However, nothing is complete or permanent. The economy and natural environment require constant efforts to consolidate the achieved results, completely overcome the negative consequences of the financial and economic crisis, improve health, seperate well-being from the environmental degradation, overcome social inequalities and to face challenges which do not know national borders.