Circular Economy Outcomes in Banks: The Role of Environmental Strategy, Women, and the Sustainability Committee

Abstract

The study investigates how environmental strategies, board gender diversity, and CSR committees affect the circular economy performance in the banking sector. For the first time, we focus on three specific reduction goals: GHG emission reduction, e-waste reduction, and offering products to reduce the negative environmental impact. Using a sample of 671 listed worldwide banks from 63 countries in 2010–2021, we demonstrate that green strategies and CSR committees positively affect all three circular economy targets. However, board gender diversity positively impacts bank emission reduction and green products offered but does not influence e-waste reduction. Furthermore, the presence of the CSR committee significantly improves the effectiveness of environmental strategies adopted by banks in achieving their circular economy performance. The 2015 Paris Agreement on climate change proves to be effective in enhancing bank circular economy reduction outcomes.