Green bonds represent one of the most significant innovations in sustainable finance over the past decade. However, despite their increasing popularity, academic studies on green bonds are scarce and mostly focus on analyzing the impact of green labels on bond yields. Our research represents one of the first attempts to empirically investigate broader issues related to green bonds, such as reasons why investors and issuers enter the green bond market, the role green bonds play in redirecting capital towards more sustainable economic activities, and their influence on how organizations approach sustainability. This paper offers a detailed insight into the rapid growth of the green bond market and analyzes how these bonds are changing the way market participants perceive and implement sustainability into their operations. Green bonds function similarly to conventional bonds but with one crucial difference: funds raised from investors are exclusively used to finance projects with positive environmental impacts, such as renewable energy sources and green buildings.