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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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    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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