The determinants of voluntary climate change disclosure commitment and quality in the banking industry

Caby, Jérôme; Ziane, Ydriss; Lamarque, Éric

doi:10.1016/j.techfore.2020.120282

Cited by 30 publications

(20 citation statements)

References 56 publications

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“…Previous studies of CC disclosure have often focused on non-financial companies (Caby et al , 2020) and few have evaluated CC disclosure among banking companies (Kılıç and Kuzey, 2019a, 2019b). The majority of the studies evaluated the voluntary carbon disclosure of banks using data taken from the questionnaires of the CDP, thus focusing on GHG disclosure (Crawford and Williams, 2010; Liu and Yang, 2018).…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

“…A recent study on 117 global banks assessed the impact at country level and of some characteristics of banks on the quality of voluntary carbon disclosure (Caby et al , 2020). The authors found evidence that banks’ size and financial performance increase the likelihood of achieving a better CDP score.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

“…A recent study on 117 global banks assessed the impact at country level and of some characteristics of banks on the quality of voluntary carbon disclosure (Caby et al, 2020).…”

Section: Banks and Climate Change-related Risks Disclosurementioning

confidence: 99%

“…Recently, the CDP organization has changed its scoring methodology by aligning the questionnaires with the TCFD recommendations. In some cases, the CDP score was used (Caby et al , 2020), in others, assessment was confined to whether the company voluntarily responded to the questionnaire (Ben-Amar et al , 2017; Kılıç and Kuzey, 2019a, 2019b).…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

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Sustainable governance and climate-change disclosure in European banking: the role of the corporate social responsibility committee

Cosma

Principale

Venturelli

2022

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Purpose The purposes of this paper are: firstly, to assess the disclosure related to climate change (CC) by major European banks to understand if the banks have grasped the most substantive aspects of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and secondly, to evaluate the contribution of a non-traditional committee (i.e. corporate social responsibility (CSR) committee) to TCFD-compliant disclosure. Design/methodology/approach Using content analysis and ordinary least squares regressions on a sample of 101 European banks, this study sought to investigate completeness, tone and forward-looking orientation of CC disclosure and explore the relationships between CSR committee and previous disclosure aspects. Findings This study shows that European banks have been able to reach an intermediate level of adequacy of compliance in terms of completeness of information but forward-looking orientation seems to be the aspect that needs the most improvement. The existence of a CSR committee dedicated to sustainability issues seems to constitute the difference between the banks in terms of disclosure. The results highlight vulnerabilities in disclosure and board characteristics relevant for improving CC disclosure. Practical implications Firms interested in strengthening stakeholder engagement and capturing strategic opportunities involved in CC should be encouraged to establish a CSR committee and appoint female directors in financial companies. This paper should be of interest to policymakers, governance bodies and boards of directors considering the initiative of corporate sustainable governance complementary to Directive 2014/95/EU on non-financial reporting by the European Commission. Originality/value To the best of the authors’ knowledge, no prior study has investigated the relationship between the CSR committee and the application of the TCFD’s recommendations in the European banking industry.

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Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

“…A recent study on 117 global banks assessed the impact at country level and of some characteristics of banks on the quality of voluntary carbon disclosure (Caby et al, 2020).…”

Section: Banks and Climate Change-related Risks Disclosurementioning

confidence: 99%

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

See 2 more Smart Citations

Sustainable governance and climate-change disclosure in European banking: the role of the corporate social responsibility committee

Cosma

Principale

Venturelli

2022

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“…The trust with the public after their collapse in the 2008 crisis can be restored by focussing on CSR commitment. After the Montreal carbon pledge signed by various banks worldwide in 2014 to measure and disclose the harmful gas emissions data of their financial assets on an annual basis; they have become more aware of the implications for CSR activities (Caby et al, 2020). Banks, in contrast to other sectors, are subject to stricter scrutiny in their reporting practices to stakeholders such as the government, media and lenders.…”

Section: Introductionmentioning

confidence: 99%

Does Corporate Social Responsibility Add Value to the Indian Banking Sector?

2022

IJFB

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Corporate social responsibility (CSR) is assumed to have an indirect impact on the performance of the banking sector due to the sector's core non-manufacturing and complex functionalities. This paper examines the value creation for a bank through CSR initiatives considering their earnings persistence and risk exposure in India. The authors measure CSR disclosure through content analysis. CSR scores for 14 items are identified from the annual reports, National CSR Portal, Ministry of Corporate Affairs (MCA, 2021) and websites of 20 Indian banks. Applying OLS and panel regression models, the role of CSR in creating value for the banking sector is established. The study found that CSR commitment has a positive impact on the market value of the banks, along with an adequate liquidity position and business risk. CSR commitment and earnings persistence contribute to the bank's expected operating performance, highlighting its sustainability through CSR investments. Participation of banks for education, healthcare, skill development, and environmental sustainability is associated with higher returns from their lending activities to customers creating social value addition. Specific CSR activities encourage bank customers to repay banks with the implication of business risk reduction for banks.

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Board gender diversity and corporate carbon commitment: Does industry matter?

et al. 2022

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The study examines whether board gender diversity is associated with corporate carbon commitment, and if so, whether the association varies between firms operating in the extractive and non‐extractive industries. Based on insights drawn from gender socialization, resource dependence, and critical mass theories, we develop models that link board gender diversity with corporate carbon commitment. Analyzing data obtained from Standard and Poor's 1500 firms, for the period 2015 to 2019, we find that higher representation of women on a firm's board is positively associated with the firm's carbon commitment and that the association is stronger for firms in the extractive industries. Furthermore, a nominal appointment of women to a firm's board reduces the likelihood of the firm's carbon commitment being at a given or higher level, while the appointment of a “critical mass” of women to the board increases the firm's inclination toward higher carbon commitment. Our findings suggest that regulatory and policymaking agencies could exploit legislative and policy initiatives that would promote board gender diversity to encourage corporates, especially those operating in the extractive industries, to commit to the climate change cause.

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The determinants of voluntary climate change disclosure commitment and quality in the banking industry

Cited by 30 publications

References 56 publications

Sustainable governance and climate-change disclosure in European banking: the role of the corporate social responsibility committee

Sustainable governance and climate-change disclosure in European banking: the role of the corporate social responsibility committee

Does Corporate Social Responsibility Add Value to the Indian Banking Sector?

Board gender diversity and corporate carbon commitment: Does industry matter?

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