APPLICATION OF A GREEN BANKING PERFORMANCE INDEX TO PORTUGAL

Authors

  • Vítor Manuel Morais Pereira Lisbon Institute of Accounting and Administration, Polytechnic Institute of Lisbon (ISCAL-IPL) https://orcid.org/0000-0002-8178-3398
  • José António Candeias Bonito Filipe Instituto Universitário de Lisboa

DOI:

https://doi.org/10.23925/2179-3565.2021v12i3p12-23%20%20%20

Keywords:

Green banking performance, Banks, Climate change, Nonfinancial information

Abstract

This paper reports the calculation of a green banking performance index that considers the importance that banks give to environmental issues. Research was conducted considering all banks authorized to operate in Portugal and similar relevant institutions. The calculated green banking performance index reveals a large difference between the 5 most representative banks and the others. The 5 most representative banks show that, on average, they are very concerned with environmental issues, and the others reveal, on average, a medium level of concern in terms of environmental issues.                                                                                                                                         

References

AZNAR-SIGUAN, G., & BRESCH, D. N. CLIMADA v1: a global weather and climate risk assessment

platform. Geosci. Model Dev., 12(7), 3085-3097. doi:10.5194/gmd-12-3085-2019

BANCO DE PORTUGAL.Banco de Portugal’s Commitment to Sustainability and Sustainable Finance. 2020.

Retrieved from

https://www.bportugal.pt/sites/default/files/anexos/pdfboletim/compromisso_sustentabilidade_e_financiamento_sustentavel_en.pdf

BANK OF ENGLAND. Climate change: why it matters to the Bank of England. Retrieved from

https://www.bankofengland.co.uk/knowledgebank/climate-change-why-it-matters-to-the-bank-of-england

BASSETI, F. The Global Banking System is not Immune to Climate Change. 2020. Retrieved from

https://www.climateforesight.eu/jobs-growth/climate-change-financial-crisis

BOSE, S., KHAN, H. Z., & MONEM, R. M. (in press). Does Green Banking Performance Pay Off? Evidence

from a Unique Regulatory Setting in Bangladesh. Corporate Governance: An International Review, n/a(n/a).

doi:10.1111/corg.12349.

CAMPRA, M., ESPOSITO, P., & LOMBARDI, R. The engagement of stakeholders in nonfinancial

reporting: New information‐pressure, stimuli, inertia, under short‐termism in the banking industry. Corporate

Social Responsibility and Environmental Management, 2020, 27(3), 1436-1444.

COLAS, J., KHAYKIN, I., & PYANET, A. Climate Change Will Restructure the Economy. Here’s How

Banks Can Prepare. Retrieved from https://www.brinknews.com/how-banks-can-manage-climate-risk/

D'ORAZIO, P., & LÖWENSTEIN, P. Mobilising investments in renewable energy in Germany: which

role for public investment banks? Journal of Sustainable Finance & Investment, 1-24, 2020..

DURRANI, A., ROSMIN, M., & VOLZ, U. The role of central banks in scaling up sustainable finance–

what do monetary authorities in the Asia-Pacific region think? Journal of Sustainable Finance & Investment,

(2), 92-112, 2020.

ECEIZA, J., HARREIS, H., HARTL, D., & VISCARDI, S. Banking imperatives for managing climate

risk. Retrieved from https://www.mckinsey.com/business-functions/risk/our-insights/banking-imperatives-for

managing-climate-risk. McKinsey, 2020.

FABRIS, N. Financial Stability and Climate Change. Journal of Central Banking Theory and Practice,

(3), 27-43. 2020.

FAIELLA, I., & LAVECCHIA, L. The carbon content of Italian loans. Journal of Sustainable Finance &

Investment, 1-19, 2020.

GRUPO DE REFLEXÃO PARA O FINANCIAMENTO SUSTENTÁVEL. (2019). Carta de Compromisso para

o Financiamento Sustentável em Portugal. 2020. Retrieved from https://www.asf.com.pt/NR/rdonlyres/6C02BED4C1B1-4FAD-977B

A561DD80AF06/0/CartadeCompromissoparaofinanciamentosustent%C3%A1velemPortugal.pdf

KAMDEM-FOTSO, L., NGOUADJE, A., & ERMENEUX, M. How banks are responding to the

financial risks of climate change. 2020. Retrieved from

https://www.mazars.com/Home/Insights/Growingsustainably/Banks-response-to-climate-change-risk

LAMPERTI, F., BOSETTI, V., ROVENTINI, A., & TAVONI, M. The public costs of climate-induced financial instability. Nature Climate Change, 9(11), 829-833. Decreto-Lei n.º 89/2017 de 28 de julho.

NETWORK FOR GREENING THE FINANCIAL SYSTEM. Case Studies of Environmental Risk

Analysis Methodologies. In. Overview of Environmental Risk Analysis by Financial Institutions. 2020.

Retrieved from

https://www.ngfs.net/sites/default/files/medias/documents/overview_of_environmental_risk_analysis_by_financ

al_institutions.pdf

PLOCHAN, P. The impact of climate change on banks. 2020. Retrieved from https://www.risk.net/risk-management/7503001/the-impact-of-climate-change-on-banks

RAINFOREST ACTION NETWORK. Banking on Climate Change. Retrieved from

https://www.ran.org/wp-content/uploads/2020/03/Banking_on_Climate_Change__2020_vF.pdf

REGELINK, M., REINDERS, H. J., VLEESCHHOUWER, M., & WIEL, I. v. d. Waterproof? An

exploration of climate-related risks for the Dutch financial sector. 2017. Retrieved from

https://www.dnb.nl/en/binaries/Waterproof_tcm47-363851.pdf

SAWYER, M. Financialisation, industrial strategy and the challenges of climate change and

environmental degradation. International Review of Applied Economics, 1-17, 2020.

SCHELLHORN, C. Financial System Stability, the Timing of Climate Change Action and the Federal

Reserve. Journal of Central Banking Theory and Practice, 9(3), 45-59, 2020.

FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES. Status Report. 2020. Retrieved from

https://www.fsb-tcfd.org/publications/

WARMBRODT, Z. Should Banks Be Forced to Price In Climate Change? 2020. Retrieved from

https://www.politico.com/news/agenda/2020/07/14/federal-reserve-climate-change-341820

Downloads

Published

2021-11-02

Issue

Section

Papers