 ESG Issues as Strategic Components of Long-term Success of Financial Institutions: Are There Differences in Financial Performance and Firm Value?Olaf Weber ()
A chapter in Sustainable Finance and ESG, 2023, pp 27-46 from Palgrave Macmillan Abstract: Abstract This section discusses ESG issues as strategic success factors in the financial industry. After a historical overview, different ESG-related products and services and their principles will be discussed. We demonstrate that considering ESG criteria in financial activities has not only had an environmental and societal effect, but a financial effect as well. Considering ESG criteria has a positive effect on financial risk and on business opportunities. Furthermore, introducing ESG-related products and services might create additional income for banks and investment firms as it meets market demands. Consequently, we argue that ESG issues should become strategic components of financial institutions to guarantee long-term success. However, Integrating ESG into the corporate business strategy is not without difficulties. ESG criteria are still not standardized, and the quality of the indicators is often hard to evaluate. Keywords: Sustainable finance; Sustainable banking; ESG; Environment; Social; Governance (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-24283-0_2 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-24283-0_2 Access Statistics for this chapter More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan |
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