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Climate Policies and Sustainability Performance in Banks: The Role of the Board of Directors

Belinda Laura Del Gaudio et al.

Global Business Review2026https://doi.org/10.1177/09721509261428639article
AJG 1ABDC B
Weight
0.50

Abstract

This article examines how board characteristics and home-country climate policies shape banks’ environmental, social, and governance (ESG) controversy performance, using a sample of 415 listed banks in the USA, the UK and the European Union over 2015–2024. Combining fractional logit, panel logistic regressions and system generalized method of moments estimations to address bounded response variables, rating transitions and endogeneity issues, we show that corporate social responsibility committees and gender-diverse boards significantly improve both environmental and social outcomes. Board retirement and meeting exert a positive influence only on environmental performance, while board independence exhibits heterogeneous effects across sustainability dimensions. More stringent climate policies are associated with higher environmental outcomes, fewer ESG controversies and a greater likelihood of upward ESG rating transitions, highlighting the central role of corporate governance in bank sustainability. Overall, these findings highlight the multidimensional role of corporate governance in strengthening banks’ sustainability performance.

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https://doi.org/https://doi.org/10.1177/09721509261428639

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@article{belinda2026,
  title        = {{Climate Policies and Sustainability Performance in Banks: The Role of the Board of Directors}},
  author       = {Belinda Laura Del Gaudio et al.},
  journal      = {Global Business Review},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1177/09721509261428639},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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