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Shareholder engagements in banks

Author

Listed:
  • Garel, Alexandre
  • Romec, Arthur
  • Zhou, Feng

Abstract

This paper studies ESG engagements in banks by one of the world’s largest investors. Banks emerge as the industry receiving the largest number of ESG engagements. We examine the determinants of ESG engagements in banks. We find that banks with more ESG incidents and larger carbon footprint are significantly more likely to be targeted. Overall, the results suggest that the decision to engage banks on ESG issues is motivated by negative ESG news and greater climate risk exposure.

Suggested Citation

  • Garel, Alexandre & Romec, Arthur & Zhou, Feng, 2025. "Shareholder engagements in banks," Economics Letters, Elsevier, vol. 254(C).
    • Handle: RePEc:eee:ecolet:v:254:y:2025:i:c:s0165176525002848
    DOI: 10.1016/j.econlet.2025.112447
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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