ESG Integration and Risk Management in the Hungarian Banking Sector
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| Format: | Thesis |
| Kulcsszavak: | bank ESG finance risk management sustainability |
| Online Access: | http://dolgozattar.uni-bge.hu/53419 |
| Abstract: | Global environmental and social issues indicate that actions are required towards a more sustainable environment.As key components of the global economy, banks and financial institutions must take responsibility and respond to climate-change-related problems immediately. They significantly impact investors’ and borrowers’ behaviour, which gives them the power to navigate the financial flow towards sustainable projects. The degree of integration of Environmental, Social and Governance (ESG) factors varies among banks and is influenced by different factors and policies.This paper aims to determine what level Hungarian banks take into consideration, evaluate and manage the ESG risks during their operation and what strategies they apply for considering the sustainability and environmental aspects in the Hungarian Banking sector.The research found that those companies that are ahead of their time started to implement ESG factors into their business strategy, gained a competitive advantage in the market.However, nowadays ESG integration has become more of a standard. If banks want to keep and improve their market position and be successful in the long run they must takefurther steps in the complete integration of Environmental, Social and Governance responsibilities so that it is an integral part of their business model. |
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