“ESG” Targets in the Corporate Governance of Banks: KPI and Double Materiality (Impact and Financial Materiality)
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Luca Tronci
Abstract
738The article addresses the role assumed by the banking sector in the transition towards a more sustainable economic system, i. e. one that combines the pursuit of profit with due consideration of other objectives aimed at mitigating the negative impacts of entrepreneurial activity on human rights and the environment. Known by the acronym “ESG”, we refer of course to so-called “Environmental, Social and Governance” objectives. The research focuses principally on the corporate governance “tools” that banking institutions must equip themselves with to facilitate an approach that considers “ESG” factors not only as elements of risk to be contained, but also as an opportunity to be managed and included in industrial plans. With the emphasis being on the means to integrate sustainability into the business of the banking, the analysis looks at recent European legislation on sustainability reporting, which introduces the principle of “double materiality”, and pays particular attention to Italian legislation and the doctrinal debate therein.
Note
This study was funded by the European Union – NextGenerationEU, in the framework of the GRINS – Growing Resilient, INclusive and Sustainable project (GRINS PE00000018 – CUP F53C22000760007). The views and opinions expressed are solely those of the authors and do not necessarily reflect those of the European Union, nor can the European Union be held responsible for them.
© 2024 Walter de Gruyter GmbH, Berlin/Boston
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- “ESG” Targets in the Corporate Governance of Banks: KPI and Double Materiality (Impact and Financial Materiality)
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Articles in the same Issue
- Frontmatter
- Frontmatter
- Reform of the CMDI Framework – Driving Off With the Brakes On
- The Digitalisation Directive II– a Major Expansion and Upgrade of EU Business Registers –
- The Simple Joint Stock Company: Emergence of a New Close Company in Poland
- The Governance of ESG Ratings and Benchmarks (Infomediaries) as Gatekeepers: Exit, Voice and Coercion
- Certainties and Uncertainties Surrounding Central Bank Digital Currencies (CBDC) vis-à-vis the EU Anti-Money Laundering Regulatory Framework
- Exit Bonuses for Management Board Members of German Stock Corporations: Legal Framework for Adequate Incentivisation by Financial Investors
- “ESG” Targets in the Corporate Governance of Banks: KPI and Double Materiality (Impact and Financial Materiality)
- Corporate Purpose, Social Enterprise Law and the Future of the Corporation: A UK Perspective
