Для этого вы можете использовать рекурсивный CTE.
/*Test Data*/
SELECT *
INTO #Folders FROM
(SELECT 1 AS FolderId, 0 AS ParentId, 'Folder1' AS FolderName UNION ALL
SELECT 2 AS FolderId, 1 AS ParentId, 'Folder2' AS FolderName UNION ALL
SELECT 3 AS FolderId, 2 AS ParentId, 'Folder3' AS FolderName UNION ALL
SELECT 4 AS FolderId, 3 AS ParentId, 'Folder4' AS FolderName ) F
/*Query*/
;WITH fl AS
( SELECT 1 AS Level,
FolderId ,
ParentId ,
FolderName ,
CAST(FolderName AS nvarchar(MAX)) AS F
FROM #Folders
WHERE FolderId = 3
UNION ALL
SELECT Level +1 ,
f.FolderId ,
f.ParentId ,
f.FolderName,
CAST(f.FolderName + '/' + fl.F AS nvarchar(MAX))
FROM fl
JOIN #Folders f
ON fl.ParentId = f.FolderId
)
SELECT top (1) F
FROM fl
ORDER BY Level DESC
drop table #Folders