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An Overview of the European Policies on ESG in the Banking Sector

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  • Michelangelo Bruno

    (Management Department, Faculty of Economics, Sapienza University of Rome, Via del Castro Laurenziano, 00185 Rome, Italy)

  • Valentina Lagasio

    (Management Department, Faculty of Economics, Sapienza University of Rome, Via del Castro Laurenziano, 00185 Rome, Italy)

Abstract

In recent years, European policy makers have ramped up their efforts to create a regulatory framework for improving sustainability in the financial system. We contribute to the on-going debate on Environmental, Social and Governance in the banking sector by providing an organic overview of the European policies put in place. The legislative framework is currently being enriched by policy makers and regulators that are carefully pursuing the objective of a more sustainable economic system, where financial institutions may act as catalysts. We also offer a comparison of the national level regulations for ESG practices in banking institutions and the related disclosure requirements.

Suggested Citation

  • Michelangelo Bruno & Valentina Lagasio, 2021. "An Overview of the European Policies on ESG in the Banking Sector," Sustainability, MDPI, vol. 13(22), pages 1-10, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12641-:d:680050
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    References listed on IDEAS

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    7. Marina Brogi & Valentina Lagasio, 2019. "Environmental, social, and governance and company profitability: Are financial intermediaries different?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(3), pages 576-587, May.
    8. Robert Engle & Marina Brogi & Nicola Cucari & Valentina Lagasio, 2021. "Environmental, Social, Governance: Implications for businesses and effects for stakeholders," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1423-1425, September.
    9. Finger, Maya & Gavious, Ilanit & Manos, Ronny, 2018. "Environmental risk management and financial performance in the banking industry: A cross-country comparison," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 52(C), pages 240-261.
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    Cited by:

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    2. Iulia Lupu & Gheorghe Hurduzeu & Radu Lupu, 2022. "How Is the ESG Reflected in European Financial Stability?," Sustainability, MDPI, vol. 14(16), pages 1-14, August.
    3. Panpan Fu & Seema Wati Narayan & Olaf Weber & Yonggang Tian & Yi-Shuai Ren, 2022. "Does Local Confucian Culture Affect Corporate Environmental, Social, and Governance Ratings? Evidence from China," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    4. Arnone, Massimo & Leogrande, Angelo, 2024. "The Sustainability of the Factoring Chain in Europe in the Light of the Integration of ESG Factors," MPRA Paper 121342, University Library of Munich, Germany.
    5. Victoria Pistikou & Floros Flouros & Georgios A. Deirmentzoglou & Konstantina K. Agoraki, 2023. "Sustainability Reporting: Examining the Community Impact of the S&P500 Companies," Sustainability, MDPI, vol. 15(18), pages 1-25, September.
    6. Guthrie, Graeme, 2024. "Farm debt and the over-exploitation of natural capital," Resource and Energy Economics, Elsevier, vol. 77(C).
    7. Volker Brühl, 2023. "The Green Asset Ratio (GAR): a new key performance indicator for credit institutions," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 13(1), pages 57-83, March.
    8. Afef Bouattour & Maha Kalai & Kamel Helali, 2024. "The non-linear relationship between ESG performance and bank stability in the digital era: new evidence from a regime-switching approach," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    9. Venturelli, Valeria & Pedrazzoli, Alessia & Pennetta, Daniela & Gualandri, Elisabetta, 2024. "Pinkwashing in the banking industry: The relevance of board characteristics," Research in International Business and Finance, Elsevier, vol. 67(PB).

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