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Banks’ ESG disclosure: A new scoring model

Author

Listed:
  • Gai, Lorenzo
  • Bellucci, Marco
  • Biggeri, Mario
  • Ferrone, Lucia
  • Ielasi, Federica

Abstract

The study aims to apply an original methodology for aggregating indicators in a new ESG scoring model, to assess the level of banks’ ESG disclosure. The methodology allows to calculate the BESGI score – Banks’ Environmental, Social, Governance and Indirect impacts score - and to compare it with mathematical and geometric means. This method applies a flexible aggregation function, that is able to treat the indicators as not fully substitutable, by avoiding compensations among divergent performances. A pilot empirical application of the BESGI model is presented in the paper, to discover banks’ green-washing practices.

Suggested Citation

  • Gai, Lorenzo & Bellucci, Marco & Biggeri, Mario & Ferrone, Lucia & Ielasi, Federica, 2023. "Banks’ ESG disclosure: A new scoring model," Finance Research Letters, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323005718
    DOI: 10.1016/j.frl.2023.104199
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    References listed on IDEAS

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    1. Mario Biggeri & Lucia Ferrone, 2021. "Measuring Child Multidimensional Deprivation: A Sustainability Perspective," Sustainability, MDPI, vol. 13(7), pages 1-19, April.
    2. Mario Biggeri & Luca Bortolotti & Vincenzo Mauro, 2021. "The Analysis of Well‐Being Using the Income‐Adjusted Multidimensional Synthesis of Indicators: The Case of China☆," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(3), pages 684-704, September.
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    4. Vincenzo Mauro & Mario Biggeri & Filomena Maggino, 2018. "Measuring and Monitoring Poverty and Well-Being: A New Approach for the Synthesis of Multidimensionality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(1), pages 75-89, January.
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    8. Marco Bellucci & Diletta Acuti & Lorenzo Simoni & Giacomo Manetti, 2021. "Restoring an eroded legitimacy: the adaptation of nonfinancial disclosure after a scandal and the risk of hypocrisy," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 34(9), pages 195-217, July.
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    More about this item

    Keywords

    ESG disclosure; Banks; ESG score; Indirect impacts;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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