This paper explores the evolving role of institutional investors—such as pension funds and sovereign wealth funds—in aligning financial practices with long-term sustainability goals. Through a comparative analysis of global trends and regional developments in Uzbekistan and Russia, the study examines how environmental, social, and governance (ESG) principles are being integrated into investment strategies. Drawing from literature reviews, expert insights, and case studies, the research highlights both the transformative potential and persistent barriers facing green finance adoption. It emphasizes the need for regulatory coherence, institutional capacity-building, and localized policy innovation to fully leverage institutional power for systemic resilience and intergenerational equity.