Search Results (223)

The purpose of this research is to examine employee perceptions regarding the implementation of ESG (environmental, social, and governance) practices in financial institutions, with a comparative focus on urban and rural banks in the Republic of Serbia. The study investigates how employees assess environmental, social, and governance aspects of ESG, as well as their own role in applying these principles in everyday work. The results reveal statistically significant differences between the two groups; employees in urban banks report greater engagement, more access to training, and stronger involvement in ESG decision-making. These findings suggest the existence of more developed institutional support, infrastructure, and organisational culture in urban banks. In contrast, employees in rural banks highlight the need for enhanced training, clearer ESG guidance, and improved oversight mechanisms. The study underlines the importance of investing in employee development and internal communication, particularly in rural contexts, to improve ESG outcomes. By focusing on employee-level perceptions, this research contributes to the understanding of how organisational and geographic factors influence the implementation of ESG-related practices in financial institutions. Full article

This study examines how Environmental, Social, and Governance (ESG) reporting is communicated and perceived on YouTube. A dataset of 553 relevant videos and 5060 user comments was extracted on 2 April 2025 ranging between 2014 and 2025, and sentiment, topic, and stance analyses were applied to both transcripts and comments. The majority of video content strongly endorsed ESG reporting, emphasizing themes such as transparency, regulatory compliance, and financial performance. In contrast, viewer comments revealed diverse stances, including skepticism about methodological inconsistencies, accusations of greenwashing, and concerns over politicization. Notably, statistical analysis showed minimal correlation between video sentiment and audience sentiment, suggesting that user perceptions are shaped by factors beyond the tone of the videos themselves. These findings underscore the need for more rigorous ESG frameworks, enhanced standardization, and proactive stakeholder engagement strategies. The study highlights the value of online platforms for capturing stakeholder feedback in real time, offering practical insights for organizations and policymakers seeking to strengthen ESG disclosure and communication. Full article

Environmental, social, and governance (ESG) evaluation has become increasingly critical for company sustainability assessments, especially for enterprises in the construction industry with a high environmental burden. However, existing methods face limitations in subjective evaluation, inconsistent ratings across agencies, and a lack of industry-specificity. To address these limitations, this study proposes a large language model (LLM)-based intelligent ESG evaluation model specifically designed for the construction enterprises in China. The model integrates three modules: (1) an ESG report information extraction module utilizing natural language processing and Chinese pre-trained language models to identify and classify ESG-relevant statements; (2) an ESG rating prediction module employing XGBoost regression with SHAP analysis to predict company ratings and quantify individual statement contributions; and (3) an ESG intelligent evaluation module combining knowledge graph construction with fine-tuned Qwen2.5 language models using Chain-of-Thought (CoT). Empirical validation demonstrates that the model achieves 93.33% accuracy in the ESG rating classification and an R² score of 0.5312. SHAP analysis reveals that environmental factors contribute most significantly to rating predictions (38.7%), followed by governance (32.0%) and social dimensions (29.3%). The fine-tuned LLM integrated with knowledge graph shows improved evaluation consistency, achieving 65% accuracy compared to 53.33% for standalone LLM approaches, constituting a relative improvement of 21.88%. This study contributes to the ESG evaluation methodology by providing an objective, industry-specific, and interpretable framework that enhances rating consistency and provides actionable insights for enterprise sustainability improvement. This research provides guidance for automated and intelligent ESG evaluations for construction enterprises while addressing critical gaps in current ESG practices. Full article

This study aims to map the scientific knowledge of bank profitability and its determinants. It identifies trends and gaps in existing research through a bibliometric analysis. To this end, 634 documents published in the Web of Science database over the last 54 years were analyzed using the bibliometric package. The results indicate an increase in the volume of publications following the 2008 financial crisis, focusing on analyzing the factors influencing bank profitability and economic growth. The Journal of Banking and Finance is the preeminent publication in this field. The literature reviewed shows that bank profitability depends on internal factors (size, credit risk, liquidity, efficiency, and management) and external factors (such as GDP, inflation, interest rates, and unemployment). In addition to the traditional determinants, the recent literature highlights the importance of innovation and technological factors such as digitalization, mobile banking, and electronic payments as relevant to bank profitability. ESG (environmental, social, and governance) and governance indicators, which are still emerging but have been extensively researched in companies, indicate a need for evidence in this area. This paper also provides relevant insights for the formulation of monetary policy and the strategic formulation of banks, helping managers and owners to improve bank performance. It also provides directions for future empirical studies and research collaborations in this field. Full article

In this work, we examine the correlation between financial inclusion and the Environmental, Social, and Governance (ESG) factors of sustainable development with the assistance of an exhaustive panel dataset of 103 emerging and developing economies spanning 2011 to 2022. The “Account Age” variable, standing for financial inclusion, is the share of adults owning accounts with formal financial institutions or with the providers of mobile money services, inclusive of both conventional and digital entry points. Methodologically, the article follows an econometric approach with panel data regressions, supplemented by Two-Stage Least Squares (2SLS) with instrumental variables in order to control endogeneity biases. ESG-specific instruments like climate resilience indicators and digital penetration measures are utilized for the purpose of robustness. As a companion approach, the paper follows machine learning techniques, applying a set of algorithms either for regression or for clustering for the purpose of detecting non-linearities and discerning ESG-inclusion typologies for the sample of countries. Results reflect that financial inclusion is, in the Environmental pillar, significantly associated with contemporary sustainability activity such as consumption of green energy, extent of protected area, and value added by agriculture, while reliance on traditional agriculture, measured by land use and value added by agriculture, decreases inclusion. For the Social pillar, expenditure on education, internet, sanitation, and gender equity are prominent inclusion facilitators, while engagement with the informal labor market exhibits a suppressing function. For the Governance pillar, anti-corruption activity and patent filing activity are inclusive, while diminishing regulatory quality, possibly by way of digital governance gaps, has a negative correlation. Policy implications are substantial: the research suggests that development dividends from a multi-dimensional approach can be had through enhancing financial inclusion. Policies that intersect financial access with upgrading the environment, social expenditure, and institutional reconstitution can simultaneously support sustainability targets. These are the most applicable lessons for the policy-makers and development professionals concerned with the attainment of the SDGs, specifically over the regions of the Global South, where the trinity of climate resilience, social fairness, and institutional renovation most significantly manifests. Full article

As the aging population grows, ensuring effective and sustainable health management for elderly individuals has become a critical challenge. This study explores the integration of smart healthcare technologies and ESG (Environmental, Social, and Governance) principles to enhance elderly health management through data-driven strategies. Using the MIMIC-III database, this study evaluates five machine learning models (Adaboost, Bagging, Catboost, GaussianNB, and SVC) through ten-fold cross-validation to predict 3-day and 30-day mortality rates among elderly ICU patients. The Bagging model achieved the best performance with an AUROC of 0.80, demonstrating the potential of smart healthcare in mortality prediction. These technologies enhance predictive accuracy, enabling the timely identification of high-risk patients and effective intervention. Through the application of smart data integration methods, this study demonstrates how combining clinical indicators with socioeconomic factors can improve healthcare equity and efficiency. Furthermore, by aligning smart healthcare development with ESG concepts, we emphasize the importance of sustainability, social responsibility, and governance transparency in future healthcare systems. The findings offer valuable contributions toward building an interoperable and ethical health ecosystem, supporting early risk identification, improved care outcomes, and the promotion of healthy living for the elderly population. Full article

This research evaluates the effectiveness of traditional models in predicting movements in the Moroccan financial market, with a focus on the MASI and MASI ESG indices. As environmental, social, and governance (ESG) criteria gain prominence in financial analysis, this study examines the strengths and limitations of conventional predictive models. The findings reveal a significant correlation between the two indices while underscoring the challenges traditional models face in effectively integrating extra-financial dimensions, particularly environmental and social factors. These limitations hinder their ability to fully capture the complexities of the Moroccan financial market, where ESG considerations are increasingly shaping economic trends. Given these constraints, the study emphasizes the need for more advanced forecasting tools, particularly models that comprehensively incorporate ESG factors. Such advancements would enhance the understanding of ongoing economic transformations and address emerging challenges. By refining these tools, predictive models could become more relevant and better equipped to meet the specific demands of Morocco’s evolving financial landscape. Full article

The impact of Environmental, Social, and Governance (ESG) scores on financial performance remains a subject of debate, as the literature reports mixed evidence regarding their effect on stock returns. This research aims to examine the relationship between ESG ratings and the change in ESG scores, or ESG Momentum, concerning both returns and risk of a large sample of stocks traded on U.S. exchanges. The study examined a sample of 3856 stocks traded on U.S. exchanges, considering 20 years of quarterly data from December 2002 to December 2022. We applied multi-factor models and tested them through pooled ordinary, fixed effects, and random effects panel regression methods. Our results show negative relationships between ESG scores and stock returns and between ESG Momentum and volatility. Contrarily, we find positive associations between ESG Momentum and returns and between ESG scores and volatility. Although high ESG scores are generally associated with lower long-term stock returns, an increase in a company’s ESG rating tends to translate into immediate positive returns and reduced risk. Accordingly, investors may benefit from strategies that focus on companies actively improving their ESG performance, while firms themselves stand to gain by signaling continuous advancement in ESG-related areas. Full article

As participants in sustainable development, corporations face the important and controversial issue of whether they can promote corporate sustainability through environmental, social, and governance (ESG) practices. To address this issue, we examine the relationship between ESG performance and corporate sustainability, measured by green total factor productivity (GTFP). Using a panel dataset of 17,559 firm-year observations from non-financial firms listed on the Shanghai and Shenzhen stock exchanges in China between 2011 and 2019, we employ fixed-effects regression models and two-stage least squares (2SLS) with instrumental variables to empirically test the impact of ESG ratings on GTFP, identify the underlying mechanisms, and examine potential heterogeneity across firms. The results show that higher ESG ratings are significantly associated with increased GTFP. Mediation analysis further reveals that this positive relationship operates through reduced financing constraints and enhanced green innovation. Notably, the mediating role of financing constraints is more pronounced for firms with greater reliance on external capital. Heterogeneity analysis indicates that ESG ratings exert stronger effects in eastern regions, pollution-intensive sectors, and state-owned enterprises. These findings provide empirical support for the role of ESG performance as an effective mechanism to advance corporate sustainability through ethics-driven financial access and innovation capability. Full article

Disruptions in a single supplier’s operations can trigger cascading effects across the entire supply chain, highlighting the critical importance of effective supplier-focused risk management. While supply chain risk management (SCRM) frameworks encompass diverse dimensions—such as supply, products, demand, and information—risks specifically related to suppliers demand tailored strategies and analytical focus. Despite the growing volume of publications on this topic, the literature still lacks updated conceptual guidance on how to manage these risks, particularly in light of emerging challenges and practices. This study addresses this gap, with the primary objective of developing a contemporary conceptual framework for supplier risk management, reflecting recent academic and practical advances. The research methodology combines bibliometric analysis, the PRISMA systematic review protocol, and visualization tools including CiteSpace and CitNet Explorer. Key findings include the evolution of thematic clusters over time, with “supplier selection” identified as the most dominant theme, and simulation as the prevailing research method. The automotive industry emerges as the most frequently studied empirical context. Moreover, the study expands existing frameworks by introducing two emerging dimensions—environmental, social, and governance (ESG) and information technology (IT)—as key factors in supplier risk management. This framework contributes to theory and practice by offering an updated lens for understanding supplier-related risks and providing decision-makers with structured insights to enhance resilience in complex supply networks. Full article

In the evolving landscape of China’s capital markets, the integration of Environmental, Social, and Governance (ESG) considerations has become increasingly crucial for investors and decision-makers. Traditional financial performance metrics often fall short in capturing the multidimensional and long-term impacts of ESG factors. This study introduces a novel computational framework that combines domain-adapted pre-trained language models with structured financial regression analysis, aiming to empirically assess the correlation between ESG disclosures and long-term financial performance. This approach allows for the simultaneous processing of both structured and unstructured ESG data, using graph-based modeling and reinforcement learning to guide sustainability aligned policy optimization. Our empirical results show that firms with consistent and well-structured ESG strategies exhibit significantly superior long-term financial outcomes compared to those with weak or inconsistent ESG engagement. This study not only confirms the value of ESG engagement in enhancing financial resilience but also offers practical recommendations for investors, regulators, and corporate decision-makers, emphasizing consistent disclosure, sector-aligned ESG investment, and proactive adaptation to policy shifts. Full article

The link between ESG and financial performance is still under debate. In this study, we explore which aspects of ESG specifically drive market valuations through both systematic and idiosyncratic risk channels. We analyze the impact of the three core ESG pillars, 10 subcategories, and associated controversies on market valuations in the energy sector. This analysis reveals that the environmental factor has a stronger impact (regression coefficient = 0.05) than the governance factor (regression coefficient = 0.003), emphasizing the need to prioritize environmental performance in ESG strategies. The positive coefficients for environmental resource use (0.005) and innovation (0.008) indicate that investments in efficiency and clean technologies are beneficial, while the negative coefficient for emissions (−0.004) underscores the risks associated with poor emissions management. These findings suggest that environmental risks currently outweigh governance risks for the energy sector, reinforcing the importance of aligning governance practices with environmental goals. To maximize ESG effectiveness, energy firms should focus on measurable improvements in resource efficiency, innovation, and emissions reduction and transparently communicate this progress to stakeholders. The evidence suggests that energy firms approach the ESG landscape differently, with sustainability leaders benefiting from higher valuations, particularly when ESG efforts are aligned with core competencies. However, many energy companies under-invest in value-creating environmental initiatives, focusing instead on emission management, which erodes value. While they excel in emission control, they lag in innovation, missing opportunities to enhance valuations. This underscores the potential for ESG risk analysis to improve portfolio performance, as sustainability can both create value and mitigate risks by factoring into valuation equations as both risks and opportunities. This study uniquely contributes to the ESG–financial performance literature by disentangling the specific ESG dimensions that drive market valuations in the energy sector, revealing that value is created not through emission control but through strategic alignment with eco-innovation, governance, and social responsibility. Full article

The recent debate on Environmental, Social, and Governance (ESG) factors has focused primarily on financial decision making and risk management from the perspectives of developed economies. However, in most developing countries, ESG risk models for mortgage lenders are very limited. In most of these countries, ESG-rating providers employ widely varying methodologies and disclosure policies, often resulting in divergent assessments of the same organization. This research develops a pilot statistical-analysis, dual-horizon ESG risk model specific to the Mexican mortgage industry, which provides a better understanding of how ESG risk could evolve over time across financial, operational, regulatory, and reputational dimensions in Mexico. This dual-horizon ESG framework considers a two-year short-term risk assessment and a ten-year long-term risk assessment. This research integrates expert opinions with a scoring system that improves on traditional methods. Dependability and internal consistency are tested using the Intraclass Correlation Coefficient (ICC) and Cronbach’s alpha. Radar chart visualization and cluster analysis are used to visualize the empirical results. The empirical findings show that environmental risk has strong temporal effects, and the perceived severity is 20% higher over the longer time horizon. Furthermore, social risk exhibits high variability, identifying it as a critical risk for financial stability and regulatory compliance. Cluster analysis identifies systematic patterns in expert opinions that determine two groups, making the qualitative findings derived from radar plots more robust. Group 0 (75% of experts) has an institutional view about ESG risks. Group 1 (25% of experts) aligns with an affiliation to large financial institutions. Finally, this research identifies three key sustainability challenges for the mortgage sector in Mexico: exposure to climate-induced stress, fragmented regulatory frameworks, and social inequality. Full article

This study investigates the impact of digital finance on corporate ESG performance, using panel data from A-share listed companies on the Shanghai and Shenzhen stock markets between 2011 and 2022. Our findings demonstrate that digital finance significantly enhances corporate ESG outcomes, with financing constraints and digital transformation serving as partial mediators and internal control quality acting as a moderating factor. The results from channel tests indicate that digital finance facilitates notable improvements in social performance and corporate governance, while its influence on environmental performance remains limited. Further analysis reveals that the positive impacts of digital finance on ESG are more evident in small-scale, technology-intensive, and non-polluting firms. This study concludes by proposing tailored recommendations for government, financial institutions, and corporations, emphasizing the need for differentiated policies to elevate ESG practices and promote higher quality, sustainable economic, and social development in China. Full article

This study aims to examine the impact of ESG management activities (independent variable) on organizational trust and organizational commitment (mediating variables), as well as organizational performance (dependent variable), among members of large manufacturing enterprises. Additionally, it investigates the moderating effect of job position on the relationship between ESG management activities and organizational performance. For the empirical analysis of this study, data were collected from 561 employees of three large manufacturing companies—Company L, Company H, and another Company H—all of which have implemented and are practicing ESG management. The data were analyzed using SPSS 29.0 and structural equation modeling (SEM: AMOS 29.0). The key findings from the empirical analysis are as follows: First of all, all three ESG factors—environmental (E), social (S), and governance (G)—had a positive effect on organizational trust. The environmental and governance factors had a positive effect on organizational commitment. However, the social factor exhibited a negative effect on organizational commitment. The environmental factor showed a negative effect on organizational performance. By contrast, the social and governance factors had a positive effect on organizational performance. Organizational trust was found to enhance organizational commitment significantly, confirming that employees who trust their organization are more likely to be committed to it. Fifth, a strong sense of trust in the organization was shown to contribute positively to organizational performance and competitiveness. Organizational commitment positively impacted organizational performance, reinforcing the idea that highly committed employees contribute to better outcomes. Finally, this study confirmed that job position moderated the relationship between ESG management activities and organizational performance, indicating that employees at different hierarchical levels perceive ESG management’s impact differently. This study expands the research scope of ESG management beyond marketing, HR, and service industries to focus on employees in large manufacturing enterprises. This provides new insights into how ESG initiatives influence internal organizational dynamics. This study is meaningful in that it provides a foundation for expanding future research into the field of finance or other areas of the manufacturing industry. From a practical standpoint, the findings highlight the necessity of strategic initiatives to ensure that employees fully understand and engage with ESG-related policies. To successfully implement ESG management, organizations must develop effective communication and integration strategies that foster employees’ recognition of ESG initiatives. Full article