Carbon neutrality: The role of banks in optimal environmental management strategies

Chaudhry, Sajid M.; Saeed, Asif; Ahmed, Rizwan Raheem

doi:10.1016/j.jenvman.2021.113545

Cited by 18 publications

(3 citation statements)

References 67 publications

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“…Further, credit growth could be used to finance projects that focus on low‐carbon transportation. This could include providing funding for public transit systems, electric vehicle charging infrastructure or other initiatives that reduce transportation emissions (Chaudhry et al, 2021; Yasin et al, 2020).…”

Section: Resultsmentioning

confidence: 99%

Does credit growth mitigate emission intensity in ASEAN countries?

Masud,

Noman,

Akhtar

et al. 2023

J of Intl Development

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In empirical studies, the disparity between financial development and environmental quality has prompted us to examine the impact of credit growth on environmental quality in ASEAN countries. These countries have experienced phenomenal credit growth over the past three decades due to their adoption of financial liberalisation, integration and innovation. In this study, we investigated the role of credit growth on environmental quality while controlling for several macroeconomic variables, including regulatory quality, natural resources, foreign direct investment, globalisation and per capita gross domestic product growth. Using static models (ordinary least square [OLS], random effect model, Panel Corrected Standard Error and partial spatial cross correlation) and dynamic models (dynamic OLS, dynamic random effect and two‐step system generalised methods of moments (GMM) on data spanning from 1984 to 2019, we observed a nonlinear association between credit growth and environmental quality. The findings suggest that credit growth may simultaneously have favourable and detrimental effects on environmental quality. High credit growth can lead to increased emissions and environmental degradation through the promotion of fossil fuel‐driven energy consumption, production and distribution of economic resources. However, if the government promotes regulatory quality and encourages lenders to invest more in green technologies and renewable and sustainable energy sources, credit growth may contribute to improved environmental quality. These results carry important policy implications.

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Section: Resultsmentioning

confidence: 99%

Does credit growth mitigate emission intensity in ASEAN countries?

Masud,

Noman,

Akhtar

et al. 2023

J of Intl Development

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“…The link between ESG and FP has thus been widely investigated using both theoretical (Sancak, 2023) and empirical (Chaudhry et al, 2021) approaches. Further, stakeholder theory argues that the company has a responsibility to all interested parties, including customers, suppliers, employees, the government, and society in general (Ferrell et al, 2010).…”

Section: Theoretical Background and Literature Reviewmentioning

confidence: 99%

Do sustainability practices contribute to the financial performance of banks? An analysis of banks in Southeast Asia

Gutiérrez‐Ponce,

Wibowo

2023

Corp Soc Responsibility Env

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In response to the need to deepen research on the impact of corporate ESG (environmental, social, and governance) pillars on the financial performance (FP) of banks, this study analyzes the relationship between ESG and FP in banks from emerging countries in Southeast Asia during the period 2010–2020. Using a sample of 19 banks from five countries with emerging economies, this article examines the level of information on ESG activities that banks report in each of their pillars and these pillars' impact on the FP. The research was conducted through an exploratory study using panel data (Thomson Reuters ESG data), parametric correlations, and regression models. FP is measured by return on assets (ROA), return on equity (ROE), and Tobin's Q (TQ), or the prevailing market price for exchanging assets divided by the market price of the goods newly produced. The findings show that ESG has a significant negative effect on all measures of FP (ROA, ROE, and TQ). However, analysis of the relationship of each individual ESG pillar to FP obtains different findings for each. Our study also shows differences in the level of ESG information in each country as a result of their specific economic characteristics. This study has limitations due to the limited ESG, bank, and country data that Thomson Reuters contains on banks in this region of Asia. In future research, more banks and more countries can be added to the analysis, as well as other control variables related to FP.

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“…Furthermore, the dynamics of businesses pursuing efficiency in processes and resource utilization have provided a guideline for developing organizational strategies that are more aligned with environmental balance (Benites & Polo, 2013;Chaudhry et al, 2021;Dornelas & Patriciane, 2005;Gunarathne & Lee, 2019). Environmental labeling can be used to affect production and consumption modes in sustainable development strategies (Miklenčičová, 2015;Moura, 2013;Song et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Environmental Product Declaration Approaches on the Brazilian Experiences: A Review

Brito

Silva

2023

EMSD

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The Environmental Product Declaration (EPD) is a type of label that has been considered reliable and complete, and it is commonly used in purchasing decisions, product design definition, environmental communication, data sources, and other applications. This article examines the approaches for the development of EPD in the Brazilian context, taking into account the initiatives of interested parties as well as the circumstances for its adoption by national firms. This work adds value by assessing which works in Brazilian literature and experiences focus on EPD, contextualizing the issue, and offering this type of label as a strategic resource. Between 2015 and 2022, the bibliographical survey uncovered 20 works. The Prisma 2020 checklist was utilized to conduct the systematic review, and the analysis in this study was both quantitative and qualitative. Since NBR ISO 14025 (2015), the publications have been consistent. Only 35% of the review content was obtained from journals, with 6 of the 7 publications resulting from academic works from their authors' postgraduate training processes, indicating a concentration of studies by a few scholars, all linked to universities in Brazil's south and southeast. Studies have shown that EPD is a valuable tool for environmental management due to its consistency, reliability, and completeness of data. However, due to a lack of Brazilian experience, this resource is not commonly known, disseminated, or employed. EPD has potential to be used as a strategic resource for businesses due to Brazil's normative, legal, and structural conditions for adoption.

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Carbon neutrality: The role of banks in optimal environmental management strategies

Cited by 18 publications

References 67 publications

Does credit growth mitigate emission intensity in ASEAN countries?

Does credit growth mitigate emission intensity in ASEAN countries?

Do sustainability practices contribute to the financial performance of banks? An analysis of banks in Southeast Asia

Environmental Product Declaration Approaches on the Brazilian Experiences: A Review

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