ESG and Banks: Towards Sustainable Banking in the European Union

Mafalda Sá ()
Additional contact information
Mafalda Sá: University of Coimbra

Chapter Chapter 19 in The Palgrave Handbook of ESG and Corporate Governance, 2022, pp 375-398 from Springer

Abstract: Abstract The relationship between banks and environmental, social and governance (ESG) factors is of increasing concern to the sustainable development debate. This chapter discusses the specific connection between ESG and the banking sector and reviews the corresponding regulatory response by the European Union, including the proposed Banking Package of October 2021. ESG factors represent real financial risks to banks, which impact how they should be managed, while banks themselves have an impact on ESG, by introducing green banking products, exerting pressure over financed entities and steering the economy. In light of this mutual interaction, and within the European Union’s sustainable finance plan, sustainable banking regulation is emerging. The chapter reviews the new European rules and proposals aimed at credit institutions on disclosure, governance and risk management mechanisms, and adjustments to capital requirements, analysing their potential implications for banks and for overall ESG objectives.

Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-030-99468-6_19

Ordering information: This item can be ordered from
http://www.springer.com/9783030994686

DOI: 10.1007/978-3-030-99468-6_19

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().