Embedding Sustainability: A Framework for Organizational Transformation in Banking

Svala Gudmundsdottir () and Throstur Olaf Sigurjonsson ()
Additional contact information
Svala Gudmundsdottir: University of Iceland
Throstur Olaf Sigurjonsson: University of Iceland

Chapter Chapter 9 in Sustainability in Banks, 2025, pp 41-51 from Springer

Abstract: Abstract This chapter develops a framework for institutionalizing sustainability within banking institutions, drawing on insights from case studies and interviews with four Icelandic banks. It identifies six interdependent components essential to institutionalizing environmental, social, and governance (ESG) priorities: strategic alignment, distributed ownership, data infrastructure, cultural coherence, capacity building, and project-based implementation. Rather than treating sustainability as a compliance function or isolated initiative, the chapter emphasizes its integration into the core organizational architecture, spanning leadership mandates, incentive systems, internal narratives, and digital systems. The analysis highlights how successful banks align ESG with business strategy, decentralize responsibility while maintaining coordination, and use agile, cross-functional projects to accelerate learning and adaptation. Notably, the chapter highlights the crucial role of culture, capacity, and leadership in translating ESG ambitions into operational reality. It concludes by advocating a shift in sustainability governance from symbolic adoption to embedded practice, framing sustainability not as a separate agenda but as a new organizing logic for modern banking. The chapter provides a diagnostic and practical tool for financial institutions seeking to integrate sustainability more deeply across their functions.

Keywords: Sustainability roles; Professionalization; Cross-functional collaboration; Institutional integration (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:spbrcp:978-3-032-05637-5_9

Ordering information: This item can be ordered from
http://www.springer.com/9783032056375

DOI: 10.1007/978-3-032-05637-5_9

Access Statistics for this chapter

More chapters in SpringerBriefs in Business from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().