Examine the level of environmental, social and governance disclosure in sustainability report – a study of the Indian banking sector

Pooja Mishra, T. G. Sant
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引用次数: 1

Abstract

Purpose Sustainable development (SD) is widely acknowledged as the center around which all development efforts should revolve. Banking is a crucial component of SD, and the adoption of sustainable banking practices by various banking institutions is a powerful catalyst for its achievement. This paper aims to investigate the level of adoption of environmental, social and governance (ESG) indicators in India and the extent to which financial institutions use these strategies. In addition, the banks have been classified according to their sustainable banking performance and showing a relationship between ESG and sustainability. Design/methodology/approach An ESG framework has been developed for the Indian banking system that focuses on the behavior of banks. The evaluation of literature helps to identify the gaps in particular frameworks for analyzing sustainable banking practices in developing nations because of the variation in economic criteria between developed and developing countries. An attempt to construct a common framework for measuring the banking sector’s sustainable efforts has been done in the past. Specifically in India, where the social and environmental dimensions of sustainability are of equal importance to governance indicators, these studies fall short of providing relevant indicators. Multiple financial reports, nonfinancial reports, corporate social responsibility reports and business responsibility reports of this sector were analyzed using content analysis techniques against ESG indicators for sustainability attainment. Findings The result of this study shows that both the sectors are disclosing their environmental indicators more as compared to other dimensions. While the analysis says that private companies are going better than public companies in terms of disclosing their ESG indicators. As compared to the international banking sector, adoption of Global Reporting Initiatives standards, United Nations Environment Programme Financial Initiatives (UNEP FI), Green Credit Policy and Equator Principles (EP) is near to the ground in India. IDFC bank is the only entity that started implementing EP practices and Yes bank also is doing a wonderful implementation of the green policies and is the signatory to UNEP FI. Practical implications The current state of sustainable banking in India is reflected in the implementation of the proposed framework. To better integrate sustainability problems into banking, this study provides helpful information for banks and other stakeholders. In addition, this study corrects the lack of research in the Indian context on sustainable banking. Originality/value To the best of the authors’ knowledge by far, this is one of the prime studies to inspect the degree of ESG disclosure by the Indian banking sector in their sustainability report.
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审查可持续发展报告中的环境、社会和治理披露水平——对印度银行业的研究
目的可持续发展(SD)被广泛认为是所有发展努力都应该围绕的中心。银行业是可持续发展的重要组成部分,各银行机构采用可持续的银行业做法是实现可持续发展的有力催化剂。本文旨在调查印度环境、社会和治理(ESG)指标的采用水平,以及金融机构使用这些战略的程度。此外,银行根据其可持续银行业绩进行了分类,并显示出ESG与可持续性之间的关系。设计/方法论/方法为印度银行系统开发了一个ESG框架,重点关注银行的行为。对文献的评估有助于确定由于发达国家和发展中国家之间经济标准的差异,在分析发展中国家可持续银行做法的特定框架中存在的差距。过去曾试图构建一个衡量银行业可持续努力的共同框架。特别是在印度,可持续性的社会和环境层面与治理指标同等重要,这些研究未能提供相关指标。针对可持续性实现的ESG指标,使用内容分析技术分析了该行业的多份财务报告、非财务报告、企业社会责任报告和商业责任报告。研究结果这项研究的结果表明,与其他方面相比,这两个部门都在更多地披露其环境指标。而分析表明,私营公司在披露ESG指标方面比上市公司做得更好。与国际银行业相比,印度已接近采用全球报告倡议标准、联合国环境规划署金融倡议、绿色信贷政策和赤道原则。IDFC银行是唯一一家开始实施EP实践的实体,Yes银行也在出色地实施绿色政策,并签署了UNEP FI。实际意义印度可持续银行业的现状反映在拟议框架的实施中。为了更好地将可持续性问题纳入银行业,本研究为银行和其他利益相关者提供了有用的信息。此外,本研究纠正了印度缺乏可持续银行业研究的问题。原创性/价值据作者所知,到目前为止,这是检验印度银行业在可持续发展报告中ESG披露程度的主要研究之一。
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来源期刊
CiteScore
6.30
自引率
10.30%
发文量
32
期刊介绍: The International Journal of Innovation Science publishes fundamental and applied research in innovation practices. As the official journal of the International Association of Innovation Professionals (IAOIP), the journal is a forum for the exchange of advanced knowledge in innovation, including emerging technologies and best practices, tools and techniques, metrics, and organization design and culture; as well as the stakeholder engagement, change management, and leadership skills required to ensure innovation succeeds. Areas of Coverage: -Innovation processes, methods, techniques- Individual''s role in Innovation- Improvements in HR, marketing, finance, or other disciplines that enable innovation- Innovation practices in specific industries or countries- Innovation centers, incubators, labs...- Regional or national economic development/policies related to innovation- Innovation competency, skills- Innovation conventions, competitions, or training- Innovation for entrepreneurs-Regional impacts on innovation- Growing innovationthrough university programs- Attracting innovative companies and entrepreneurs
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