Abstract
The article covers the analysis of economic feasibility of the PRI principles implementation into banking operations. We tested hypothesis that analysis of ecological, social and corporate risks of potential borrowers could improve the efficacy of banks’ credit policy and that the effective management of ESG risk of the bank itself could lead to a decreased cost of funding and may be an important competitive advantage in head-hunting for talents. In the course of the study, all three hypotheses were confirmed and therefore we highlighted existing economic feasibility of introducing principles of responsible investing in banking operations. On its turn the confirmed feasibility should lead to wider implementation of PRI principles in banking operations all over the world.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
BIS. (2004). International Convergence of Capital Measurement and Capital Standards. Basel Committee on Banking Supervision. Available at: https://www.bis.org/publ/bcbs128.pdf. Accessed 18 June 2020.
Deloitte. (2019). The Deloitte Global Millennial Survey 2019. Available at: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/deloitte-2019-millennial-survey.pdf. Accessed 18 June 2020.
Fitch Ratings. (2019). Introducing ESG Relevance Scores for Corporates. Available at: https://www.fitchratings.com/research/corporate-finance/introducing-esg-relevance-scores-for-corporates-07-01-2019. Accessed 18 June 2020.
Fitch Ratings. (2020). White Paper: ESG in Credit. Available at: https://your.fitch.group/esgwhitepaper.html. Accessed 18 June 2020.
Governance & Accountability Institute. (2019). Millennials really do want to work for environmentally-sustainable companies, according to a new survey of large company employees. Available at: https://www.ga-institute.com/newsletter/press-release/article/millennials-really-do-want-to-work-for-environmentally-sustainable-companies-according-to-a-new-su.html. Accessed 18 June 2020.
Howe, N., & Strauss, W. (1992). Generations: The history of America’s future, 1584 to 2069. HarperCollins.
Howe, N., & Strauss, W. (1993). 13th Gen: Abort, retry, ignore, fail. Vintage Books.
Howe, N., & Strauss, W. (1997). The fourth turning: What the cycles of history tell us about America’s Next Re ndezvous with destiny. Broadway Books.
Moody’s Investment Services. (2019). The impact of environmental, social and governance risks on bank ratings. Available at: https://www.eticanews.it/wp-content/uploads/2019/07/Banking_fullreport.pdf. accessed 18 June 2020.
Moody’s Investment Services. (2020). ESG risks material in 33% of Moody’s 2019 private-sector issuer rating actions. Available at: https://www.moodys.com/research/Moodys-ESG-risks-material-in-33-of-Moodys-2019-private–PBC_1218114. Accessed 18 June 2020.
Nuzzo, C. (2018). Shifting perceptions—Part 3: Exploring the disconnects. Principles for Responsible Investment. Available at: https://www.unpri.org/download?ac=5819. Accessed 18 June 2020.
Panova, G. S., & Kishmaria, I. L. (2020). Principles of responsible investing in Russian Banks. Banking (Банковские услуги), 4, 2–10.
S&P Global Ratings. (2019). The Role of environmental, social, and governance credit factors in our ratings analysis. Available at: https://www.spglobal.com/ratings/en/research/articles/190912-the-role-of-environmental-social-and-governance-credit-factors-in-our-ratings-analysis-11135920#:~:text=S%26P%20Global%20Ratings%20incorporates%20environmental,rating%20outlooks%2C%20and%20ratings%20headroom. Accessed 18 June 2020.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Kishmariya, I. (2021). Responsible Principles in Banks: Short-Term Trend or Inevitability?. In: Panova, G. (eds) Financial Markets Evolution. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-71337-9_19
Download citation
DOI: https://doi.org/10.1007/978-3-030-71337-9_19
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-71336-2
Online ISBN: 978-3-030-71337-9
eBook Packages: Business and ManagementBusiness and Management (R0)