A Study On The Impact Of Environmental,Social And Corporate Governance(ESG) On The Financial Performance Of Commercial Banks

Currently,carbon peak and carbon neutrality have become a global issue.The goal of carbon peak and carbon neutrality will also bring about changes in production structure,including a shift in financial investment philosophy,potential market opportunities and some financial risks related to climate change.ESG’s proposal just effectively deals with these problems.Different from the traditional financial performance indicators,ESG comprehensively evaluates and considers the value of enterprises from the perspective of environment,social responsibility and corporate governance.Like most industries,China’s commercial banks are gradually increasing their attention to their own sustainable development ability,and the regulatory agencies should also gradually integrate ESG governance into the whole process of credit granting.Previous research on the relationship between commercial bank ESG performance and financial performance is not much,according to the domestic and foreign scholars literature summary,domestic 17 listed Banks as samples,selected the 2011-202111 years ESG score and related financial data regression analysis,and made the robustness test and heterogeneity test,aims to analyze the relationship between the ESG performance and financial performance.At the same time,the two cases of ICBC and Industrial Bank are taken from the perspective of environment,social responsibility and corporate governance,so as to further explore the real relationship between the two parts.Comprehensive empirical and the results of the case study shows that commercial Banks ESG performance will have a positive impact on financial performance,and the influence of the corporate governance,social responsibility and the relationship between financial performance is not obvious,and environmental performance will be due to short-term capital investment have a negative impact on performance,at the same time also found that non-state-owned Banks to improve the financial performance is more obvious than state-owned Banks.Through the case,it is also found that the specific practice of commercial bank ESG directly or indirectly has a positive impact on the financial performance,which further verified the empirical analysis results.Finally,after analyzing the above research results mainly from the perspective of policy and commercial bank development put forward the following Suggestions: the government and relevant regulators should be unified information disclosure standards and improve the ESG evaluation system,and can also promote the pilot leading role of key enterprises,from a more profound sense guide commercial Banks to perfect ESG information disclosure system construction.From the perspective of commercial banks themselves,ESG performance will have a positive effect on the financial performance,so managers should focus on the financial contribution brought by ESG.In the management,improve the ESG system process,and strengthen the information disclosure of ESG banks.Finally,we can comprehensively improve the ESG governance capacity of commercial banks,and build carbon neutral banks,so as to realize the sustainable development of commercial banks.