IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v35y2026i2p2842-2863.html

Boards and ESG Performance: The Contingent Influence of Climate Vulnerability on Global Banks

Author

Listed:
  • Renata Karkowska
  • Reyes Samaniego‐Medina
  • Pilar Giráldez‐Puig
  • Zbigniew Korzeb

Abstract

This study examines the contingent effect of climate vulnerability on the relationship between board characteristics and environmental, social, and governance (ESG) performance of global banks. We use a dataset of 438 banks across 54 countries (2010–2022) and fixed effects estimation, two‐stage least squares, and generalized method of moments to address potential endogeneity. Our findings show that the effectiveness of board governance mechanisms on ESG performance depends on the levels of climate vulnerability. Although most mechanisms perform well in low‐risk contexts, only CSR committees and gender diversity on the board improve ESG performance in stable and highly vulnerable environments. These results highlight the importance of integrating climate vulnerability into corporate governance frameworks, suggesting that a one‐size‐fits‐all approach to board composition is insufficient. This study underscores the need for adaptive governance strategies that align with regional climate risks and offers practical insights for regulators, investors, and executives to enhance ESG performance.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:bstrat:v:35:y:2026:i:2:p:2842-2863
    DOI: 10.1002/bse.70314
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.70314
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.70314?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:35:y:2026:i:2:p:2842-2863. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.