Purpose – The introduction of compulsory rules on sustainable development at the company level poses the consequent problem of analyzing the actions and behaviors carried out by companies also in non-financial directions. Environmental, social and governance (ESG) practices serve as a basic disclosure tool to examine these actions. Nevertheless, a high risk of greenwashing persists in the banking sector. For this reason, more comprehensive investigations into non-financial disclosure may be necessary, such as adherence to the integrated reporting framework. Design/methodology/approach – To evaluate banks’ non-financial disclosure, a dual-method approach is adopted. Firstly, the study employs a novel indicator that encompasses various dimensions of corporate sustainability and green strategies. Secondly, to map disclosure patterns that are comparable and repeatable across banks, a quantitative component applies natural language processing, including cosine similarity and clustering. Findings – Although the study reveals that banks exhibit a high level of ESG disclosure, the degree of consistency with the guiding principles of the integrated reporting is quite weak. The main gaps concern readability, accessibility and performance, as well as strategic objectives, and the explanation of how banks reconcile economic and sustainability aspects when generating value. Hence, the study confirms the findings of previous investigations, which indicate that the risks of greenwashing remain high, despite the introduction of new mandatory reporting rules. Originality/value – While ESG standards are the most widely adopted benchmark for assessing non-financial disclosure in the context of sustainable development, they may not be sufficient to evaluate the green behaviors of companies and banks in particular. A gap risks emerging between the close pursuit of ESG criteria and the pursuit of a broader long-term sustainability strategy, minimizing greenwashing practices. This is one of the few studies that try to highlight this possible disconnection.
Examining the ESG of banks. The integrated reporting perspective
Scandurra G
;Thomas A
2026-01-01
Abstract
Purpose – The introduction of compulsory rules on sustainable development at the company level poses the consequent problem of analyzing the actions and behaviors carried out by companies also in non-financial directions. Environmental, social and governance (ESG) practices serve as a basic disclosure tool to examine these actions. Nevertheless, a high risk of greenwashing persists in the banking sector. For this reason, more comprehensive investigations into non-financial disclosure may be necessary, such as adherence to the integrated reporting framework. Design/methodology/approach – To evaluate banks’ non-financial disclosure, a dual-method approach is adopted. Firstly, the study employs a novel indicator that encompasses various dimensions of corporate sustainability and green strategies. Secondly, to map disclosure patterns that are comparable and repeatable across banks, a quantitative component applies natural language processing, including cosine similarity and clustering. Findings – Although the study reveals that banks exhibit a high level of ESG disclosure, the degree of consistency with the guiding principles of the integrated reporting is quite weak. The main gaps concern readability, accessibility and performance, as well as strategic objectives, and the explanation of how banks reconcile economic and sustainability aspects when generating value. Hence, the study confirms the findings of previous investigations, which indicate that the risks of greenwashing remain high, despite the introduction of new mandatory reporting rules. Originality/value – While ESG standards are the most widely adopted benchmark for assessing non-financial disclosure in the context of sustainable development, they may not be sufficient to evaluate the green behaviors of companies and banks in particular. A gap risks emerging between the close pursuit of ESG criteria and the pursuit of a broader long-term sustainability strategy, minimizing greenwashing practices. This is one of the few studies that try to highlight this possible disconnection.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
