Proceedings of the 3rd International Conference on Big Data Economy and Digital Management, BDEDM 2024, January 12–14, 2024, Ningbo, China

Research Article

The Impact of ESG on Banks' Sense of Environmental Responsibility

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  • @INPROCEEDINGS{10.4108/eai.12-1-2024.2347202,
        author={Zanqian  Lu and Yonghao  Li},
        title={The Impact of ESG on Banks' Sense of Environmental Responsibility},
        proceedings={Proceedings of the 3rd International Conference on Big Data Economy and Digital Management, BDEDM 2024, January 12--14, 2024, Ningbo, China},
        publisher={EAI},
        proceedings_a={BDEDM},
        year={2024},
        month={6},
        keywords={esg environmental responsibility index hysteresis analysis},
        doi={10.4108/eai.12-1-2024.2347202}
    }
    
  • Zanqian Lu
    Yonghao Li
    Year: 2024
    The Impact of ESG on Banks' Sense of Environmental Responsibility
    BDEDM
    EAI
    DOI: 10.4108/eai.12-1-2024.2347202
Zanqian Lu1, Yonghao Li2,*
  • 1: Liaoning University
  • 2: Wuhan University
*Contact email: 395665106@qq.com

Abstract

This research meticulously analyzed 26 Chinese banks listed on the stock market, with a concentrated focus on their social responsibility reports and financial metrics. The primary objective was to deeply investigate the behavioral patterns of commercial banks in the environmental responsibility sphere and the related outcomes. For this purpose, the study innovatively introduced a novel index, the Environmental Responsibility Index (ERI), which amalgamates the Green Credit Ratio (GCR) and the Total Green Credit (TGC), employing Z-score and weighted methods for processing. The ERI was utilized as the variable to be explained, aiming to provide a more comprehensive evaluation of the banks' environmental responsibility performance. Additionally, the research encompassed a holistic assessment of the banks' performance in environmental, social, and corporate governance (ESG) dimensions. The results of the study revealed a complex yet insightful phenomenon: at the initial stages of banking operations, there was a non-significant or even negative correlation between ESG and environmental responsibility. This could suggest a latency in the effects. It was observed that with a time lag in the comprehensive ESG score and its individual components, their impact on the environmental responsibility of commercial banks gradually shifted from neutral or negative to positive.