Eco-Banking in Relation to Financial Performance of the Sector—The Evidence from Poland

Justyna Zabawa , Cyprian Kozyra

Abstract

With the advent of corporate social responsibility, practical aspects of environmental responsibility have gained importance and recognition among both manufacturing and service enterprises, including financial services. This trend is also evidenced extensively in the literature. On the other hand, the literature reveals a significant gap in the research into the matter of environmental responsibility of banks in the light of their financial effectiveness. In addition, the European Union (EU) regulations require banking entities to provide reports of any activities related to protection of natural resources. Two important dilemmas arise in this context—how to measure the environmental involvement of the banking sector and how to relate this type of involvement to the sector’s financial effectiveness? We applied Analytic Hierarchy Process (AHP), linear ordering methods—standardized sum method and synthetic measure of development, Pearson’s and Spearman’s correlation coefficients, Student’s t and Mann-Whitney U tests and boxplots to measure environmental responsibility of banks and to examine the empirical relationship between environmental engagement and bank financial performance data. We also used analytical methods for the study of financial and non-financial reports of banks. We posited three research hypotheses related to measurement of environmental involvement of banks (ecologization) and to correlations between the sector’s financial effectiveness and its environmental involvement. The study does not confirm any direct influence of banks’ financial results upon the scale of their environmental involvement. Based on the above, the we also made an attempt at explaining the results and identifying directions of further research into the subject.
Author Justyna Zabawa (E&F / DoB)
Justyna Zabawa,,
- Department of Banking
, Cyprian Kozyra (E&F / DoS)
Cyprian Kozyra,,
- Department of Statistics
Journal seriesSustainability, ISSN 2071-1050, (N/A 70 pkt)
Issue year2020
Vol12
No6
Pages1-23
Publication size in sheets1.1
Article number2162
Keywords in Englishbank; banking sector; financial efficiency; CSR; sustainability; environmental responsibility
ASJC Classification3305 Geography, Planning and Development; 2105 Renewable Energy, Sustainability and the Environment; 2308 Management, Monitoring, Policy and Law
DOIDOI:10.3390/su12062162
Languageen angielski
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Zabawa_J_Kozyra_C_Eco-Banking_in_Relation.pdf 1,21 MB
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Dekl_C.Kozyra_Eco‐Banking_in_Relation_to_Financial_Performance.docx 13,04 KB
Score (nominal)70
Score sourcejournalList
Publication indicators Scopus SNIP (Source Normalised Impact per Paper): 2016 = 0.911; WoS Impact Factor: 2018 = 2.592 (2) - 2018=2.801 (5)
Citation count*2 (2020-11-20)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
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