Incorporating environmental criteria into credit risk management in Bangladeshi banks

Training the next generation of disaster risk managers through sustainability research and teaching

“…Weber et al (2010) show that the integration of a debtor's environmental performance as a decision criterion improves the predictive validity of the credit rating process and also the predicted financial performance of the borrowing firm. Weber et al (2015) replicate these findings in a study of Bangladeshi banks.…”

The influence of environmental NGOs on project finance: a case study of activism, development and Australia’s Great Barrier Reef

“…Or, in other words, responsible borrowers with clear track records of CSR performance have an easier time accessing finance (Cheng, Ioannou, and Serafeimi 2014, 18). Other research also highlight the 'correlation' between sustainability performance and credit risk (Bauer and Hann 2010;Weber, Hoque, and Islam 2015), including that environmental concerns in particular 'are associated with a higher cost of debt financing and lower credit ratings' for borrowers in need of finance (Bauer and Hann 2010). It is thus that major project financiers are acting as 'gatekeepers' and 'environmental monitors' of major projects (Richardson 2002, 380).…”

“…Although studies in developing countries are relatively rare (Weber, Hoque, and Islam 2015), it is now generally accepted that 'ESG factors can have long-term consequences on a company's financial performance, either for better or for worse' (WBCSD and UNEP 2010, 7), so much so that it is commonplace to see investment banks and major asset managers advertise and employ 'ESG analysts' to investigate and carry out due diligence on potential borrowers.…”

Corporate Social Responsibility Engagement as a Determinant of Bank Reputation: An Empirical Analysis

“…Consequently, we can affirm that corporate governance is an important CSR dimension and a reputational driver, as it positively affects degrees of information transparency and the monitoring functions performed by shareholders to minimize agency costs (BCBS, 2010). Likewise, it has been stated that the environment directly and indirectly impacts banks (Weber et al, 2015) while at the same time, environmental issues are particularly central to bank reputations. In recent years, more and more banks have exhibited proactive environmental engagement (Weber, 2012) by acknowledging their 'responsibility' and by recognizing 'their environmental sustainability, which is one part of their (…) corporate social responsibility' (Jo et al, 2015: 258).…”