Banks and sustainability, between saying and doing there is greenwashing
Emerging from the study of researchers from three Italian universities (Ferrara, Pisa, Turin) who analysed the green commitment of 65 G20 banks
Sustainability commitments and concrete actions. Is there coherence between theory and daily practice on the part of banks? Researchers from three Italian universities (Ferrara, Pisa and Turin) analysed the behaviour of credit institutions. They monitored the official documents of 65 banks based in G20 countries over a period ranging from 2015, the key year for the world of sustainability, to 2022. Well, only 26 credit institutions over the 7-year period showed a progressive alignment between declared commitments, especially on climate issues, and implemented actions. The good news is that of these 26 banks, the majority (18) are European.
The Studio
Lo studio ha un titolo lunghissimo: “The Influence of External Contextual and Firm-Specific Stakeholder Voices on Banks’ Greenwashing: Effective Monitoring or an Incentive to Deceive?”. Le autrici e gli autori sono Giuliana Birindelli (università di Pisa), Vera Palea e Aline Miazza (entrambe dell’università di Torino) e Mauro Aliano (università di Ferrara). In particolare, i ricercatori hanno messo a punto un indicatore per il settore bancario che ha misurato la discrepanza tra quanto dichiarato appunto nei report di sostenibilità e quello che gli istituti hanno fatto nella pratica. A supporto ci sono due punteggi: uno che valuta la trasparenza sulla base della frequenza dei termini ambientali presenti nei documenti ufficiali; l’altro punteggio analizza e misura invece l’effettiva adozione di strategie verdi
Regulation and public opinion
The study then looks at how much weight green regulations and also public opinion pressure have. Well, according to the researchers, banking regulation does not have the desired deterrent effect on greenwashing. Institutions tend to focus more on compliance than on actual action. Conversely, where there is strong public opinion, things change. Greater public attention on climate change issues leads to less greenwashing by banks. The environmental focus of public opinion therefore reduces green fiddling.
Analysts and Esg Ratings
Finally, the market. The study shows that increased coverage by financial analysts is correlated with increased greenwashing by credit institutions. The reason? The pressure on short-term financial results could push banks to amplify sustainability issues in their reports. An amplification that is then not realised with actions aligned to what is stated in official documents.
On the other hand, it is the ESG ratings of the specialised agencies that contain the greenwashing phenomenon. It is emphasised by the researchers that banks with higher ESG ratings tend to behave more consistently with sustainability principles.
