ESG disclosure and financial performance in sustainable banking: A conceptual perspective

Title : ESG disclosure and financial performance in sustainable banking: A conceptual perspective

Abstract:

Environmental, Social and Governance (ESG) disclosure has become an important area of discussion in sustainable banking. Banks play a significant role in economic development through their lending, investment and financial services. Their environmental responsibilities, social commitments and governance practices may influence stakeholder expectations and long-term financial outcomes. However, existing research has reported mixed findings regarding the relationship between ESG practices and bank financial performance. This article develops a conceptual perspective on the relationship between ESG disclosure and financial performance in sustainable banking. It draws on relevant literature and theoretical perspectives, particularly Stakeholder Theory and Signaling Theory, to explain how transparent sustainability information may be associated with profitability, market valuation and financial risk. The review highlights the importance of disclosure quality, governance practices, regulatory conditions and differences in the measurement of financial performance. It also identifies opportunities for future research into the mechanisms through which ESG disclosure may influence banking outcomes. The article proposes a conceptual framework that can guide subsequent empirical investigations and contribute to the discussion of responsible and sustainable banking practices.

Biography:

Harshini she is a Research Scholar in the Department of Commerce at Annamalai University, Tamil Nadu, and India. she academic Interests including financial management, sustainable finance, Environmental, Social and Governance (ESG) disclosure, and banking performance. She research focuses on understanding the relationship between ESG disclosure and financial performance in the banking sector. She am interested in exploring how environmental responsibility, social welfare, and corporate governance practices contribute to sustainable banking and financial decision making. Through my academic research, she aim to develop a better understanding of sustainability practices and their relevance to financial decision-making and responsible banking.