Sustainable Development and European Banks: A Non-Financial Disclosure Analysis

Abstract

This paper aims at contributing to the debate on the relationships between the European financial sector and sustainable development. Using a non-financial disclosure analysis of 262 European banks, the research sought, first, to investigate the “scope” of the contribution of European banks to the Sustainable Development Goals (SDGs) and, second, to explore the factors that seem to differentiate the SDGs approach among banks. The results show that country of origin, legal system, and adoption of an integrated report seem to differentiate banks in terms of contribution to the SDGs. The business model and stock exchange listing, conversely, do not seem to represent discriminatory factor in the contribution of banks toward the SDGs. The study can be useful for managers and decision makers to develop policies to support organizations in contributing to the SDGs.

Corporate Social Responsibility in the European Banking Sector: Commitment to the 2030 Agenda and Its Relationship with Gender Diversity

“…According to Forcadell and Arcil [33], an increase in CSR practices improves the reputation of the institutions that engage in these practices while boosting their economic performance. Regarding the implementation of such practices, in 2018, the banking sector was handed a leading role within the European Union [34] through the action plan on financing sustainable growth, which aims "to connect finance with the specific needs of the European and global economy for the benefit of the planet and our society" [35] (p. 2).…”

“…Therefore, there is a clear relationship between CSR and the SDGs. These 17 interconnected goals, which are designed to address major global challenges, cover the three dimensions of sustainable development: economic growth, social inclusion, and environmental protection [34], corresponding to the core dimensions of CSR.…”

“…Examples include the study by Rosati and Faria [42]. In the case of the banking sector, the study by Zimmermann [43] was based on evidence from 26 German banks, Avrampou et al [44] used a sample of five European banks, and the study by Cosma et al [34] focused on 262 European banks.…”

“…The analysis not only takes into account whether the bank is committed to one or more of the SDGs and the number of SDGs pursued by the bank but also measures the intensity of this commitment. While the first two measures have been used in previous studies [34,42], no studies appear to have used the third, even though companies differ in the way they adopt the SDGs [44]. Its use is, therefore, a key issue.…”

“…The importance of this endeavor is further highlighted by the need to focus on the banking sector, given its key role in achieving the SDGs. This key role results from its capacity to steer companies, public administrations, and families toward the 2030 Agenda [34] by providing the resources and investments needed to meet the SDGs [44].…”