Disentangling the S and the G in the European banking industry: The role of climate risk and opportunity awareness

IF 6.9 2区 经济学 Q1 BUSINESS, FINANCE
Federico Giovanni Rega , Simona Russo , Dario Salerno
{"title":"Disentangling the S and the G in the European banking industry: The role of climate risk and opportunity awareness","authors":"Federico Giovanni Rega ,&nbsp;Simona Russo ,&nbsp;Dario Salerno","doi":"10.1016/j.ribaf.2025.102977","DOIUrl":null,"url":null,"abstract":"<div><div>The awareness of climate change risks and opportunities is crucial for the banking industry, as the environmental transition poses social (S) and governance (G) challenges. An extensive literature has examined the drivers and effects of ESG performance – proxied by ESG scores - on banking dimensions, whereas the relationship between climate risks and opportunities management and S and G factors has received little attention. Using a sample of European banks over the 2013–2022 period, we provide empirical evidence on the crucial role of financial institutions' climate awareness in improving S and G strategies and practices. In particular, this link is positive and significant for some social and governance sub-scores related to the green transition, such as <em>product responsibility, community, stakeholder engagement,</em> and <em>management</em>. Moreover, some supervisory and risk governance mechanisms, such as the IRB approach validation for regulatory purposes, seem to strengthen this relationship. Robust to a battery of sensitivity and robustness checks, our results offer a new contribution to the literature, providing useful suggestions for banks, policymakers, and regulatory authorities, supporting the ongoing debate about the interconnectedness between climate risk awareness and the other spheres of sustainable development.</div></div>","PeriodicalId":51430,"journal":{"name":"Research in International Business and Finance","volume":"77 ","pages":"Article 102977"},"PeriodicalIF":6.9000,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Research in International Business and Finance","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0275531925002338","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0

Abstract

The awareness of climate change risks and opportunities is crucial for the banking industry, as the environmental transition poses social (S) and governance (G) challenges. An extensive literature has examined the drivers and effects of ESG performance – proxied by ESG scores - on banking dimensions, whereas the relationship between climate risks and opportunities management and S and G factors has received little attention. Using a sample of European banks over the 2013–2022 period, we provide empirical evidence on the crucial role of financial institutions' climate awareness in improving S and G strategies and practices. In particular, this link is positive and significant for some social and governance sub-scores related to the green transition, such as product responsibility, community, stakeholder engagement, and management. Moreover, some supervisory and risk governance mechanisms, such as the IRB approach validation for regulatory purposes, seem to strengthen this relationship. Robust to a battery of sensitivity and robustness checks, our results offer a new contribution to the literature, providing useful suggestions for banks, policymakers, and regulatory authorities, supporting the ongoing debate about the interconnectedness between climate risk awareness and the other spheres of sustainable development.
拆解欧洲银行业的S和G:气候风险和机遇意识的作用
对气候变化风险和机遇的认识对银行业至关重要,因为环境转型带来了社会(S)和治理(G)挑战。大量文献研究了ESG绩效(以ESG分数为代表)对银行维度的驱动因素和影响,而气候风险和机会管理与S和G因素之间的关系却很少受到关注。利用2013-2022年期间欧洲银行的样本,我们提供了金融机构气候意识在改善S和G战略和实践中的关键作用的经验证据。特别是,对于与绿色转型相关的一些社会和治理分项得分,如产品责任、社区、利益相关者参与和管理,这种联系是积极而显著的。此外,一些监督和风险治理机制,如IRB方法验证的监管目的,似乎加强了这种关系。通过一系列敏感性和稳健性检查,我们的结果为文献提供了新的贡献,为银行、政策制定者和监管机构提供了有用的建议,支持了关于气候风险意识与其他可持续发展领域之间相互联系的持续辩论。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
11.20
自引率
9.20%
发文量
240
期刊介绍: Research in International Business and Finance (RIBAF) seeks to consolidate its position as a premier scholarly vehicle of academic finance. The Journal publishes high quality, insightful, well-written papers that explore current and new issues in international finance. Papers that foster dialogue, innovation, and intellectual risk-taking in financial studies; as well as shed light on the interaction between finance and broader societal concerns are particularly appreciated. The Journal welcomes submissions that seek to expand the boundaries of academic finance and otherwise challenge the discipline. Papers studying finance using a variety of methodologies; as well as interdisciplinary studies will be considered for publication. Papers that examine topical issues using extensive international data sets are welcome. Single-country studies can also be considered for publication provided that they develop novel methodological and theoretical approaches or fall within the Journal''s priority themes. It is especially important that single-country studies communicate to the reader why the particular chosen country is especially relevant to the issue being investigated. [...] The scope of topics that are most interesting to RIBAF readers include the following: -Financial markets and institutions -Financial practices and sustainability -The impact of national culture on finance -The impact of formal and informal institutions on finance -Privatizations, public financing, and nonprofit issues in finance -Interdisciplinary financial studies -Finance and international development -International financial crises and regulation -Financialization studies -International financial integration and architecture -Behavioral aspects in finance -Consumer finance -Methodologies and conceptualization issues related to finance
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:604180095
Book学术官方微信