The banking sector’s response to environmental sustainability

Abstract

The major theme of this research has been to understand the South African banking sector’s response to environmental sustainability. The research was both qualitative and quantitative in nature. To elicit understanding of these responses, semi-structured interviews were undertaken with representatives from seven South African banks. The research interviews revolved around four core themes; the environmental drivers, environmental strategy implementation, the corresponding practices undertaken and their frame of reference according to the sustainable value framework, together with the relevant benefits and costs realised. The key research findings of the study include: all of the banks have either formalised or are in the process of formalizing a response to the pursuit of environmental sustainability; the banks either have or are in the process of developing a sustainability strategy; the growing environmental concerns and credit risks are currently the primary drivers of pursuing environmental sustainability. Furthermore, the practices adopted by the banks to pursue environmental sustainability were currently internally focused with priority for operational quick wins addressing risk and cost reduction. Based on the research findings, recommendations have been made to further enhance the pursuit of environmental sustainability. These include: integration of environmental sustainability factors in performance reporting for all business units; integration of environmental sustainability criteria in all business case assessments. Copyright