The study investigates the effects of ESG washing on banks' reputational exposure. We define ESG washing as a disparity between a bank's environmental and social disclosure level and the practical implementation of the relative measures. The analysis involves an international sample of 120 banks operating across 35 countries from 2014 to 2020. The results evidence a different effect based on the pillar considered: the higher the inconsistency on environmental issues, the higher a bank's reputational exposure. Conversely, higher levels of disclosure compared to performance on social issues appear to reduce reputational exposure. In addition, citizen movements and the country's legal system play a significant role in amplifying or mitigating a bank's reputational exposure. Our findings offer insight into the phenomenon of ESG washing in the banking industry, supporting the need for more verified information across countries and all economic sectors.

Venturelli, V., Pedrazzoli, A., Pennetta, D., Denovellis, G. (2024). Assessing the influence of ESG washing on bank reputational exposure: A cross-country analysis. BUSINESS ETHICS, THE ENVIRONMENT & RESPONSIBILITY [10.1111/beer.12727].

Assessing the influence of ESG washing on bank reputational exposure: A cross-country analysis

Pedrazzoli A.
Secondo
;
2024

Abstract

The study investigates the effects of ESG washing on banks' reputational exposure. We define ESG washing as a disparity between a bank's environmental and social disclosure level and the practical implementation of the relative measures. The analysis involves an international sample of 120 banks operating across 35 countries from 2014 to 2020. The results evidence a different effect based on the pillar considered: the higher the inconsistency on environmental issues, the higher a bank's reputational exposure. Conversely, higher levels of disclosure compared to performance on social issues appear to reduce reputational exposure. In addition, citizen movements and the country's legal system play a significant role in amplifying or mitigating a bank's reputational exposure. Our findings offer insight into the phenomenon of ESG washing in the banking industry, supporting the need for more verified information across countries and all economic sectors.
Articolo in rivista - Articolo scientifico
bank; ESG; reputational risk; substantive vs. symbolic; washing behaviour;
English
28-lug-2024
2024
open
Venturelli, V., Pedrazzoli, A., Pennetta, D., Denovellis, G. (2024). Assessing the influence of ESG washing on bank reputational exposure: A cross-country analysis. BUSINESS ETHICS, THE ENVIRONMENT & RESPONSIBILITY [10.1111/beer.12727].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/520021
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