| Abstract [eng] |
The merging and efficiency of Environmental, Social, and Governance (ESG) risk management in German banks is investigated in this master's thesis. The study emphasizes the need of properly controlling ESG risks, which have grown to be absolutely vital for maintaining banking sector sustainability and financial stability. The paper assesses the pragmatic application of ESG risk management in German banks, reviews current research on ESG integration in financial institutions, and examines theoretical elements of ESG risk management. The objective is to evaluate the degree of which German banks include ESG elements into their operations and decision-making procedures and ascertain how these policies affect their long-term stability and financial performance. Effective ESG risk management improves both financial resilience and market confidence, according to the results; yet, constraints include data availability, uneven regulatory frameworks, and the lack of standardized approaches limit complete ESG integration. In the end, the study emphasizes the need of enhancing ESG structures to guarantee their effective application and to propel sustainable practices in the banking industry. |
