Transparent Banking: Unveiling the Drivers of Online Circular Economy Disclosure in European Banks

Ilenia Fraccalvieri, Vitiana L'Abate, Nicola Raimo, Filippo Vitolla and Candida Bussoli

Corporate Social Responsibility and Environmental Management, 2025, vol. 32, issue 3, 3342-3354

Abstract: In response to global efforts to address climate change, biodiversity loss, and ecosystem degradation, the transition to a circular economy (CE) has emerged as a key strategy for achieving sustainable development. Financial institutions, particularly banks, play a pivotal role in this transition by supporting companies through financial and legal frameworks, network development services, and advisory support, while also adopting internal sustainable practices. Given their central role in the CE, banks are also expected to enhance transparency by clearly communicating their CE initiatives and raising awareness. Despite this, CE disclosure (CED) practices among banks have received limited attention in academic literature. This study, through the lens of legitimacy theory, aims to address this gap by examining the level of CED in European banks and the impact of certain bank characteristics—such as size, age, Internet visibility, and internationalization—on the amount of CE information disseminated through their official websites. The econometric analysis, conducted on a sample of 107 European banks, reveals that size, Internet visibility, and internationalization positively influence the amount of CE information disclosed, while age has no significant effect. The findings enhance the knowledge of how banks manage and communicate their CE efforts, providing valuable insights for banks, policymakers, and standard setters.

Date: 2025
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https://doi.org/10.1002/csr.3132

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Persistent link: https://EconPapers.repec.org/RePEc:wly:corsem:v:32:y:2025:i:3:p:3342-3354

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