The Benefits of Sustainability Integration in Banking

Purcarea Liviu () and Radulescu Carmen-Valentina ()
Additional contact information
Purcarea Liviu: Bucharest University of Economic Studies, Bucharest, Romania
Radulescu Carmen-Valentina: Bucharest University of Economic Studies, Bucharest, Romania

Proceedings of the International Conference on Business Excellence, 2024, vol. 18, issue 1, 935-944

Abstract: This study investigates the way banks choose to implement sustainability, and shows the advantages and challenges that this integration brings. We used a methodology that combined bibliometric analysis and case studies that included the integration of sustainability in different banking institutions. What was observed as a result of the study is that a correct adoption of the principles of long-term sustainability have multiple benefits: - increasing operational efficiency - improving the image of banks; positive impact on society and the environment. Through this research we hope to add to the specialized literature, coming with clear evidence that the banking environment can contribute with a positive impact on sustainability. The decision-making factors in the management and the board of the banking institutions use these evidences as information that can later be transformed into performance indicators, indicators that will contribute through their results to encouraging the implementation of sustainable development within the banks. We know that the future comes with climatic challenges, or precisely a sustainable banking strategy that includes the analysis of all risks can generate a balance sheet behind anticipated. This integration of sustainability in the banking sector encompasses environmental, social and governance (ESG) principles; ESG has gained increasing attention in recent years. "Sustainable economic development has become an important factor on the agenda of various economic and business institutions, so banks and financial institutions are also an essential part of this trend" (Tarkhanova, 2018). Case studies from real institutions are included to exemplify successful implementations (BNP PARIBAS Personal Finance). Although it faces challenges and obstacles, the banking sector has much to gain by adopting sustainability from a social, corporate governance and economic perspective.

Keywords: Sustainability; Banking; Risk; Challenges; CSR (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/picbe-2024-0081 (text/html)

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:vrs:poicbe:v:18:y:2024:i:1:p:935-944:n:1020

DOI: 10.2478/picbe-2024-0081

Access Statistics for this article

Proceedings of the International Conference on Business Excellence is currently edited by Alina Mihaela Dima

More articles in Proceedings of the International Conference on Business Excellence from Sciendo
Bibliographic data for series maintained by Peter Golla ().