Abstract
All organisations have a significant influence on the society, from
the way they treat employees to the way they serve their customers, but financial institutions have influence that goes much further. As providers of financial capital, they can direct funds into organisations that benefit society as well as influence others to change and create more sustainable business models. Measuring and reporting impact has a crucial role on reputation and credibility and are reflected in the financial returns. Social and environmental impacts are also materializing on banks‘ balance sheets, and it is anticipated that there will be increasing demand from regulators on environmental, social, and governance (ESG) issues, moving from voluntary to mandatory requirements. This raises important questions on how to adequately measure, manage, and report the impact generated on clients, employees, and the society. This chapter provides an overview of
ESG performance and impact measurement in the banking industry. It reviews evidence from academic research on ESG and banking, it offers an overview of ESG data in the banking industry compared to non-banking institutions, and summarizes initiatives related to impact measurement for financial institutions
| Original language | English |
|---|---|
| Title of host publication | The Impact of Organizations Measurement, Management and Corporate Reporting |
| Editors | Cristiano Busco, Costanza Consolandi, Irma Malafronte, Fabrizio Sammarco, Elisabetta Scognamiglio |
| Place of Publication | Abingdon, U.K. |
| Publisher | Routledge |
| Pages | 157-174 |
| ISBN (Print) | 9781032612713 |
| Publication status | Published - 19 Oct 2023 |
Keywords
- Accounting and finance