IDEAS home Printed from https://ideas.repec.org/a/bog/econbl/y2021i53p83-112.html
   My bibliography  Save this article

ESG risks: a new source of risks for the banking sector

Author

Listed:
  • Faidon Kalfaoglou

    (Bank of Greece)

Abstract

This study is motivated by the fact that the financial sector has been mandated to support political decisions promoting sustainable development. For the banking sector, ESG (environmental, social and governance) risks constitute a new source of risks which should be identified, evaluated, monitored and managed. Given the novel nature of these risks, this is a challenging task. The purpose of this study is to clarify concepts, increase awareness and facilitate the assimilation of the regulation into the decision-making process. The first part of the study analyses the ESG themes and the transmission channels towards the traditional banking risks. The second part focuses on the initiatives that may facilitate the ESG framework to be introduced into the financial sector. The third part focuses on how banks can incorporate ESG themes into decision-making. The ambitious policy agenda in relation to sustainability requires a shifting mindset in the financial sector, in order to finance the transformation towards sustainability.

Suggested Citation

  • Faidon Kalfaoglou, 2021. "ESG risks: a new source of risks for the banking sector," Economic Bulletin, Bank of Greece, issue 53, pages 83-112, July.
    • Handle: RePEc:bog:econbl:y:2021:i:53:p:83-112
    DOI: 10.52903/econbull20215305
    as

    Download full text from publisher

    File URL: https://doi.org/10.52903/econbull20215305
    Download Restriction: no
    File URL: https://libkey.io/10.52903/econbull20215305?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nikos Ventouris & Georgios Palaiodimos, 2022. "Proposals for the reform of EU fiscal rules," Economic Bulletin, Bank of Greece, issue 55, pages 67-81, July.
    2. Cosma, Simona & Rimo, Giuseppe & Torluccio, Giuseppe, 2023. "Knowledge mapping of model risk in banking," International Review of Financial Analysis, Elsevier, vol. 89(C).
    3. Massimo Arnone & Angelo Leogrande, 2024. "The Sustainability Of The Factoring Chain In Europe In The Light Of The Integration Of Esg Factors," Working Papers hal-04629337, HAL.
    4. Ioanna C. Bardakas, 2022. "Energy consumption by energy type and exports of goods in Greece: a comparative analysis in relation to the euro area," Economic Bulletin, Bank of Greece, issue 56, pages 75-92, December.
    5. Alves, Carlos Francisco & Meneses, Lilian Lima, 2024. "ESG scores and debt costs: Exploring indebtedness, agency costs, and financial system impact," International Review of Financial Analysis, Elsevier, vol. 94(C).
    6. Cantero-Saiz, María & Polizzi, Salvatore & Scannella, Enzo, 2024. "ESG and asset quality in the banking industry: The moderating role of financial performance," Research in International Business and Finance, Elsevier, vol. 69(C).

    More about this item

    Keywords

    sustainable finance; UN SDGs; Paris Agreement; ESG risks; transmission channels; responsible banking; responsible investing; ESG-linked financial products; ESG and bank corporate governance; ESG and bank risk management; ESG investing;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bog:econbl:y:2021:i:53:p:83-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anastasios Rizos (email available below). General contact details of provider: https://edirc.repec.org/data/boggvgr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.