Doing Good While Doing Well? ESG Management as an Obstacle to Impact‐Oriented Sustainable Finance in Large Spanish Banks

Clara García and Fabio Casalegno

Corporate Social Responsibility and Environmental Management, 2025, vol. 32, issue 5, 6937-6950

Abstract: Addressing environmental and social sustainability challenges demands significant private financing. In response, financial institutions globally—including major Spanish banks—have increasingly adopted sustainable finance (SF). However, persistent greenwashing concerns question whether these practices meaningfully advance sustainability objectives. This thematic analysis identifies institutional obstacles preventing Spanish banks from translating SF commitments into tangible outcomes. It investigates both implementation practices and the influence of inter‐organizational relationships. The findings reveal successful SF institutionalization at the organizational level, yet constrained within ESG management frameworks. This approach emphasizes financial materiality while neglecting impact materiality, creating barriers to genuine impact‐oriented SF that requires double‐materiality integration. Ultimately, this ESG‐focused institutionalization enables financial institutions to “do well” (financially) while presuming they “do good”—despite inadequate impact accountability. Consequently, current SF commitments and practices may fail to drive substantial sustainability progress.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/csr.70068

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:wly:corsem:v:32:y:2025:i:5:p:6937-6950

Access Statistics for this article

More articles in Corporate Social Responsibility and Environmental Management from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().