ESG Risk Management in Banking: Strategy, Regulation, and Market Reaction (Banking, Money and International Finance)

Sustainable development has become a defining challenge of the 21st century, driven by climate change, environmental degradation, and the global initiatives of the Sustainable Development Goals (SDGs) and the Paris Agreement.These issues have gained urgency not only because of rising global awareness of environmental, social, and financial concerns, but also due to the growing significance of environmental, social, and governance (ESG) risks-particularly for banks and markets.This book provides a comprehensive overview of the definitions, trends, and regulatory approaches to ESG risk in the banking sector.It examines how banks develop strategies for managing ESG risks, and how stock, bond, and credit markets respond to such risks, including the implications of regulatory changes.Company size, geographical location, and industry characteristics are analyzed as key factors shaping these dynamics.By combining a review of current regulations and initiatives with practical perspectives on E