The Determinants of the Environmental Performance of EU Financial Institutions: An Empirical Study with a GLM Model

Konstantina Ragazou, Ioannis Passas, Alexandros Garefalakis, Eleni Zafeiriou and Grigorios Kyriakopoulos
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Konstantina Ragazou: Department of Business Administration and Tourism, Hellenic Mediterranean University, GR71410 Heraklion, Greece
Ioannis Passas: Department of Business Administration and Tourism, Hellenic Mediterranean University, GR71410 Heraklion, Greece
Alexandros Garefalakis: Department of Business Administration and Tourism, Hellenic Mediterranean University, GR71410 Heraklion, Greece
Eleni Zafeiriou: Department of Business Administration, Neapolis University Pafos, Paphos 8042, Cyprus
Grigorios Kyriakopoulos: School of Electrical and Computer Engineering, National Technical University of Athens (NTUA), GR15780 Zografou, Greece

Energies, 2022, vol. 15, issue 15, 1-15

Abstract: Within the last few decades, the issue of the environmental performance of European financial institutions has become a significant feature of their strategic plans. Financial institutions can contribute through their own activities and investments, and also through their relationship with economic sectors and consumers, in decreasing environmental footprint. The purpose of this research is to investigate the determinants that affect the environmental performance of European financial institutions. Financial markets have been selected as the main research field for this study, as it presents an opportunity for environmental policy and is useful in view of the need for a wider range of policy instruments. Moreover, on a more practical level, financial institutions can interact with the environment in several ways, such as investors, innovators, valuers, powerful stakeholders, and polluters. The study is based on a mixed methodology approach, which integrates: (i) bibliometric analysis based on R package and (ii) panel data analysis with the assistance of a generalized linear model (GLM). Findings show that socioeconomic, governance, and technology factors positively affect the environmental performance of European financial institutions. Moreover, the incorporation of alternative energy sources, such as renewable energy in the corporate function, is a requirement for greening the financial institutions. The above can guide financial institutions to develop the appropriate strategies for decreasing their environmental footprint, improving their operational efficiency, and becoming more attractive and competitive in the market.

Keywords: environmental performance; socio-economic determinants; renewable energy; GLM (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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