Today's society is faced with a series of challenges brought about by environmental and social factors. Global warming, loss of biodiversity, scarcity and pollution of natural resources, gender equality and social responsibility are just some of the problems. In the 21st century, the European Union is beginning to actively change its legal framework with the aim of transitioning to a fully sustainable economy. On the other hand, it simultaneously promotes the importance of social responsibility and transparent corporate governance. Various directives and strategies have been adopted that regulate this area, among which the directives on non-financial reporting, the taxonomy of sustainable investments, the Green Plan, NextGenEU and the directives on shareholder rights stand out. Aim of this thesis is to analyze the legal framework by which the European Union, as a leader in the world, implements environmental, social and management factors. During the analysis, scientific research methods of analysis, deduction, comparison, description and classification were used. In order to outline the context, in the first part of the work, it is necessary to state the facts about the current state of the world and why it is urgent to act. In this context, the terms sustainable investment and sustainable banking are defined. The central part of the paper is based on Europe as the first climate-neutral continent and the initiatives that have been launched. At the end, social and corporate factors are analyzed with potential legislative solutions. Only official publications from the field of European Union legislation, world organizations, and scientific and professional publications from the field of finance and corporate management were used as a source of literature.