How Is the ESG Reflected in European Financial Stability?

Lupu, Iulia; Hurduzeu, Gheorghe; Lupu, Radu

doi:10.3390/su141610287

Cited by 16 publications

(9 citation statements)

References 45 publications

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“…Madison and Schiehll (2021) showed that the individual pillars might have a different sensitivity to materiality issues. Moreover, Lupu et al (2022) found that the impact of the individual pillars on systemic risk varies to a certain degree. Finally, according to the European Banking Authority (2021), especially the E‐Pillar could significantly affect the overall financial system due to the scale and complexity of the environmental risks.…”

Section: Results For Individual E‐ S‐ and G‐pillarsmentioning

confidence: 99%

“…Indeed Scholtens and Van't Klooster (2019) argued that higher sustainability scores could reduce the systemic risk contribution of banks. Similarly, Lupu et al (2022) found evidence that the overall ESG score, as well as the individual pillar score, has a notable impact on the financial stability of banks in Europe, stressing that this influence is nonlinear. Additionally, the duration of ESG disclosure also plays a role, as Chiaramonte et al (2021) showed that it can positively affect stability for European banks.…”

Section: Introductionmentioning

confidence: 95%

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Do lower environmental, social, and governance (ESG) rated companies have higher systemic impact? Empirical evidence from Europe and the United States

Bax

Bonaccolto

Paterlini

2022

Corp Soc Responsibility Env

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In recent years, companies have increasingly been characterized by environmental, social, and governance (ESG) scores, and investors and academics have raised questions concerning financial performance and investment risks. Now, as the European Banking Authority has acknowledged that ESG risks can potentially impact the economic and financial system, the debate on systemic risk has gained traction. Understanding the relationship between ESG merit and systemic risk is of utmost importance for the stability of the economic and financial system, still, research is limited. Relying on real-world European and United Stated data, we quantify systemic risk by means of QL-CoVaR. Empirical analyses of the entire period from 2007 to 2021 show that companies with high ESG scores tend to exhibit low QL-CoVaR values indicating a positive effect of ESG scores. Such evidence is confirmed by clustering the individual companies into ESG portfolios and focusing on COVID-19.Additional insights using the individual pillars are also provided.

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Section: Results For Individual E‐ S‐ and G‐pillarsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 95%

Do lower environmental, social, and governance (ESG) rated companies have higher systemic impact? Empirical evidence from Europe and the United States

Bax

Bonaccolto

Paterlini

2022

Corp Soc Responsibility Env

View full text Add to dashboard Cite

show abstract

“…Based on the examination, the ESG factors had a positive impact on profit as well, therefore it can be considered as an aspect which the banks, the investors and the regulators should also address . Considering the result of the research by Lupu et al (2022), the financial stability of European banks listed on stock exchanges are influenced by their ESG scores (Lupu et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Green and Digital Transitions

2024

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In our study, we review the framework of questionnaire research methods suitable for analyzing the consumer acceptance of vehicle industry innovations, more specifically, of autonomous vehicles. Our aim is to identify the most widely used research models and examine which variables affect consumer acceptance of self-driving technologies to the greatest extent. The various modified versions of the TAM and UTAUT models are the most commonly used models to address the topic in the literature. Both models are characterized by the attempt to predict a consumer's behavioral intention based on the specificities of a technology. Due to the difficulties of prior testing of self-driving technologies, it is worth reviewing these methods from the aspect of how suitable they are for capturing the consumer acceptance of this technology and through what adaptation measures. We do not aim to question the validity of researching the topic by questionnaire surveys, but we find it important to emphasize the significance of cautious adaptation. In the present paper, we intend to provide a methodological basis for future research related to autonomous technology by revising the TAM and UTAUT methods.

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“…First, risk management is an important pillar of the banking operation. Second, as La Torre et al (2021) and Lupu et al (2022) highlight, regulatory authorities focus on ESG risk and put pressure on banks to understand sustainability risk drivers and translate them into their business models. Following the advocation of Lee and Suh (2022), we examine the association between sustainability and performance through a multi-dimensional approach.…”

Section: Introductionmentioning

confidence: 99%

“…Second, as La Torre et al. (2021) and Lupu et al. (2022) highlight, regulatory authorities focus on ESG risk and put pressure on banks to understand sustainability risk drivers and translate them into their business models.…”

Section: Introductionmentioning

confidence: 99%

Is ESG disclosure associated with bank performance? Evidence from the Visegrad Four countries

Lamanda,

Tamásné Vőneki

2023

MEQ

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PurposeThe purpose of this paper is to investigate the relationship between ESG disclosure and banks performance and to discuss how banks are committed to the implementation of sustainability issues.Design/methodology/approachThe authors examined the annual, risk and sustainability reports published by 26 banks located in four Central European countries (Czech Republic, Hungary, Poland and Slovakia) in the period of 2017–2021. The authors applied the methodology of content analysis and developed indexes. Panel regression was performed to improve and ensure the robustness of this study.FindingsThe results show that social and governance aspects dominate the ESG preparedness; however, after 2019, there was a significant improvement in the integration of environmental issues. This study confirms a strong association between bank size (total assets) and ESG reporting, and between capital adequacy and ESG reporting. The results demonstrate that there is no connection between banks' operational and financial performance and ESG disclosure. Finally, this study concludes that the integration of ESG risks into the risk management framework is at an early stage.Practical implicationsThis study also adds to the existing research in the field of sustainability reporting. For regulators, this research proves their essential role in the facilitation of sustainable development. For practitioners, the ESG disclosure index could serve as a “detection tool” in the sustainability self-assessment process.Originality/valueThe authors examined – through a self-developed multidimensional ESG disclosure index – the sustainability reporting of the banking sector in four countries from the Central European region.

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How Is the ESG Reflected in European Financial Stability?

Cited by 16 publications

References 45 publications

Do lower environmental, social, and governance (ESG) rated companies have higher systemic impact? Empirical evidence from Europe and the United States

Do lower environmental, social, and governance (ESG) rated companies have higher systemic impact? Empirical evidence from Europe and the United States

Green and Digital Transitions

Is ESG disclosure associated with bank performance? Evidence from the Visegrad Four countries

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