Environmental, Social, and Governance (ESG) Principles in the Banking Sector. Development, Integration, and Risk Management Strategies : a case study of a Finnish banks' approach to ESG Framework.
Abramova, Anna (2024)
Abramova, Anna
2024
All rights reserved. This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024062023776
https://urn.fi/URN:NBN:fi:amk-2024062023776
Tiivistelmä
This thesis investigates how banks develop, integrate, and manage Environmental, Social, and Governance (ESG) principles to address sustainability challenges and regulatory requirements. The study begins by exploring the development of ESG principles within the banking sector, examining how these principles have evolved and been defined over time. It continues with integration of ESG principles, focusing on practical strategies and methods that banks employ to incorporate ESG into their operations. Finally, the research addresses ESG risk management and compliance, highlighting the importance of adhering to regulatory frameworks. Through a combination of interviews with industry professionals and an extensive literature review, the study provides a comprehensive view of ESG practices in banking. The findings emphasize the necessity for banks to add ESG considerations into their governance structures and decision-making processes to foster sustainable change and societal impact. Additionally, the research reveals the significance of developing clear and consistent ESG standards to facilitate better implementation and compliance. The thesis concludes by explaining the study's limitations and recommending further research to broaden the understanding of ESG in the banking sector. It suggests incorporating quantitative methods and examining the long-term effects on financial performance and stakeholder perceptions to help banks in navigating sustainability challenges and regulatory requirements.