Green Goals, Financial Gains: SDG 7 “Affordable and Clean Energy” and Bank Profitability in Romania

Mihaela Curea, Maria Carmen Huian (), Francesco Zecca, Florentina Olivia Balu and Marilena Mironiuc
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Mihaela Curea: Department of Accounting, Business Information Systems and Statistics, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, 700505 Iasi, Romania
Maria Carmen Huian: Department of Accounting, Business Information Systems and Statistics, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, 700505 Iasi, Romania
Francesco Zecca: Department of Management, Faculty of Economics, Sapienza University of Rome, 00161 Rome, Italy
Florentina Olivia Balu: Geneva School of Economics and Management (GSEM), University of Geneva, 1211 Geneva, Switzerland
Marilena Mironiuc: Department of Accounting, Business Information Systems and Statistics, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, 700505 Iasi, Romania

Energies, 2025, vol. 18, issue 13, 1-20

Abstract: This study investigates the relationship between disclosures related to Sustainable Development Goal 7 (SDG 7) and the financial profitability of Romanian commercial banks during the 2017–2023 period. Using an unbalanced panel dataset of 17 banks and applying fixed-effects regression models, the paper examines how transparency around energy-related sustainability practices influences various dimensions of bank profitability: recurring earning power (REP), loan yield (LY), return on assets (ROA), and return on equity (ROE). Macroeconomic energy indicators, such as the energy intensity level of primary energy (EnInt) and renewable energy consumption (REnC), are also controlled for. The findings indicate that SDG 7.1 disclosures are negatively associated with all profitability measures, except for LY, suggesting potential short-term trade-offs between sustainability transparency and financial outcomes. In contrast, SDG 7.2 disclosures positively impact REP, ROA, and ROE, underscoring the financial relevance of renewable energy financing. SDG 7.a disclosures show no significant relationship with profitability, indicating limited operational involvement in global energy cooperation. Additionally, higher energy intensity negatively affects REP and LY, supporting existing evidence that energy efficiency improves banking performance. These findings have implications for banking strategy, emphasizing the need to align sustainability disclosures with business priorities while recognizing the long-term benefits of green finance and energy efficiency.

Keywords: SDG 7; bank profitability; Sustainable Development Goals (SDGs); sustainability reporting; renewable energy (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: 2025
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