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Circular Economy Outcomes in Banks: The Role of Environmental Strategy, Women, and the Sustainability Committee

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  • Evita Allodi
  • Maria Gaia Soana

Abstract

The study investigates how environmental strategies, board gender diversity, and CSR committees affect the circular economy performance in the banking sector. For the first time, we focus on three specific reduction goals: GHG emission reduction, e‐waste reduction, and offering products to reduce the negative environmental impact. Using a sample of 671 listed worldwide banks from 63 countries in 2010–2021, we demonstrate that green strategies and CSR committees positively affect all three circular economy targets. However, board gender diversity positively impacts bank emission reduction and green products offered but does not influence e‐waste reduction. Furthermore, the presence of the CSR committee significantly improves the effectiveness of environmental strategies adopted by banks in achieving their circular economy performance. The 2015 Paris Agreement on climate change proves to be effective in enhancing bank circular economy reduction outcomes.

Suggested Citation

  • Evita Allodi & Maria Gaia Soana, 2025. "Circular Economy Outcomes in Banks: The Role of Environmental Strategy, Women, and the Sustainability Committee," Business Strategy and the Environment, Wiley Blackwell, vol. 34(4), pages 4227-4251, May.
    • Handle: RePEc:bla:bstrat:v:34:y:2025:i:4:p:4227-4251
    DOI: 10.1002/bse.4197
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    Cited by:

    1. Renata Karkowska & Reyes Samaniego‐Medina & Pilar Giráldez‐Puig & Zbigniew Korzeb, 2026. "Boards and ESG Performance: The Contingent Influence of Climate Vulnerability on Global Banks," Business Strategy and the Environment, Wiley Blackwell, vol. 35(2), pages 2842-2863, February.
    2. Yani Permatasari & Meifaza Ainur Rosyidah & An Nurrahmawati & Nor Aiza Mohd Zamil & Wulandari Fitri Ekasari, 2025. "Exploring the Role of Sustainability Committees in Carbon Performance: Evidence From ASEAN‐5 for Good or for Worse?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(5), pages 7102-7118, September.

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