| Abstract [eng] |
ESG (Environmental, Social and Governance) and its risks are becoming more relevant by the day. In 2022, the European Parliament and council has adopted the Corporate Sustainability Reporting Directive (CSRD), which creates a framework for obtaining public, standardized and comparable data on various ESG metrics and factors from banks and companies. The requirements of the directive became a law in march, 2024, therefore, it is important to analyze and compare banks sustainability reports, since getting such information on the banks internal governance and ESG factors was not possible before the CSRD directive. Objective of the work - Based on the first sustainability reports submitted in accordance with the CSRD directive, conduct a comparative analysis of risk management and reporting practices of Scandinavian and Baltic banks in the US and assess the relationship between ESG factors and financial results. Main hypothesis: ASV factors have a statistically significant impact on banks' financial results: lower funded issues and lower employee turnover, as well as a higher proportion of women on the board, have a positive effect on banks' profitability indicators (ROA, ROE). The review of the empirical researched revealed lack of consensus regarding the financial impact of ESG factors in banks. The empirical part of this study analyzed the impact of ESG factors such as financed emissions, employee turnover and women count in the banks governing board on the financial performance of banks. The results revealed a strong, statistically significant relationship between banks emissions intensity and financial performance, however, could not find statistically significant relationships in other ESG factors, such as Social and Governance. |
