The impact of climate change management on banks profitability

Jérôme Caby, Ydriss Ziane and Eric Lamarque

Journal of Business Research, 2022, vol. 142, issue C, 412-422

Abstract: This study empirically examines the influence of climate change management on banks’ profitability using panel data of a sample of 137 banks from 36 emerging and developed countries during the period 2011–2019, using the Generalized Method of Moments. Our empirical evidence shows that, although banks seem to be aware of the consequences of climate change on their business, to the point of making it a strategic topic worthy of the board of directors, they remain very timid in terms of operational implementation. It leads to a positive impact on profitability limited to the overall quality of climate change management and disclosure and an ex-post justification of the topic’s relevance to the board. The foreseeable introduction of new banking regulations and the current weak relationship between climate change managerial practices and financial performance should encourage banks to pay greater attention to these practices to preserve their future returns.

Keywords: Climate change management; Bank; Corporate social responsibility; Profitability; Carbon disclosure project (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:142:y:2022:i:c:p:412-422

DOI: 10.1016/j.jbusres.2021.12.078

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