Journal of
Italian
Banking
Association
year 100
Italian
Banking
Association
year 100
Esg models for banks: risk-based or performance-based?
Marco Di AntonioMay 2024 - n. 5
Keywords: Modelli Esg, banche, strategie di management
Jel codes: G21, G28, M14, Q50
Esg issues are now at the forefront of banks' strategies. In fact, they include rather heterogeneous aspects since the three dimensions of Esg (environmental, social, organizational) are different in terms of nature, impact on management and degree of complexity. The strong conditioning exerted by the supervisory authorities risks flattening banks' responses to risk-based approaches. On the contrary, the choice of the Esg model to be adopted must be exercised with awareness and rationality. The article offers a contribution to this selection process, identifying the alternative Esg models towards which one can orient and describing their main characteristics. In particular, a risk-based approach is distinguished from a performance-based one (the latter is divided into two variants). Moving towards one or the other of the three models has different implications on the formulation of the strategy, the design of the organizational structures and the functioning of the business processes.
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