Determinants for ESG Adoption in the Banking Industry: Implications for Policy and Practice

Wissem Ajili Ben Youssef, Najla Bouebdallah and Thuy Phong Nguyen

Chapter 2 in Innovating Finance for a Sustainable Future:Integrating FinTech, Blockchain and Generative AI, 2026, pp 29-63 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This study investigates the key factors influencing the adoption of Environmental, Social, and Governance (ESG) principles within Vietnam’s banking sector, with a particular focus on identifying the primary drivers and barriers to ESG integration. Employing a quantitative research design, data were collected via structured questionnaires administered to 300 banking professionals engaged in ESG-related roles. Structural Equation Modeling (SEM) using AMOS was utilized for data analysis. The findings reveal that ESG adoption is positively associated with several organizational and external factors, including CEO awareness, transformational leadership, a shared green vision, environmental corporate social responsibility (CSR), and supportive government policies. Moreover, ESG integration is shown to enhance banks’ market reputation and contribute to both sustainable development and improved organizational performance. Key enablers of ESG adoption include organizational innovation, effective management processes, and regulatory support. Based on these insights, the study offers practical recommendations to accelerate ESG adoption in Vietnam’s banking industry. These include strengthening leadership capabilities, increasing ESG awareness among executives, and implementing more robust regulatory frameworks to foster sustainable finance.

Keywords: Generative Artificial Intelligence; Technology–Organization–Environment (TOE); ESG Factors; Sustainability; Blockchain; Supply Chain Finance; Trade Finance; FinTech; Customer Loyalty; Mobile Banking; Perceived Risk; Trust; Personalization; Digital Banking Adoption; Customer Behavior; Digital Innovation; Retail Banking; CSR; Foreign Ownership; Digital Transformation; Bank Performance; Big Four; Auditing; Intention to Use; Risk Assessment; Risk Mitigation; CAMELS-Based Framework; Banking; Qualitative Approach; Quantitative Approach; Case Study; Vietnam Banking Sector (search for similar items in EconPapers)
JEL-codes: G21 G23 G28 O33 Q56 (search for similar items in EconPapers)
Date: 2026
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