Bank-based climate change initiatives, sustainability characteristics, and performance: The role of corporate governance

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The impact of climate change on bank performance has attracted growing interest from academics, practitioners, regulators, and policymakers in recent years. However, studies in this area of research are scarce and lack clear conclusions. Furthermore, these studies have not clarified whether governance structure plays a role in mitigating the effects of climate risks on financial performance. Therefore, this study seeks to shed light on the role of corporate governance characteristics in moderating the link between climate change and bank performance. Furthermore, the study examines the effect of bank climate change initiatives and bank sustainability characteristics on bank performance by analyzing a significant sample of European Union (EU) banks over the period from 2007 to 2023. Initial findings highlight that the impact of climate change initiatives on bank performance is moderated by good corporate governance practices and thus supports a new paradigm for bank performance strategies.

Keywords: Climate Change, Corporate Governance, Bank Climate Change Initiatives, Bank Performance, Bank Sustainability

JEL Classification: G34, L25, G21, Q54

Received: 05.11.2024
Accepted: 11.11.2024

How to cite: Capuano, P. (2025). Bank-based climate change initiatives, sustainability characteristics, and performance: The role of corporate governance. In M. Pazarskis, A. Kostyuk, V. Santolamazza, & P. Capuano (Eds.), Corporate governance: Scholarly research and practice (pp. 46–50). Virtus Interpress. https://doi.org/10.22495/cgsrapp8