Abstract:
Banks will play a pivotal role in the transition to a green economy and the achievement of
the Sustainable development Goals (SDGs). Banks have investors and shareholders and
as such must produce returns in order for shareholders to retain or increase their
investment. This study assesses the effect that corporate sustainability disclosures and
performance have on bank performance. The study included the six largest banks for
South Africa, for which data was collected from publicly available sources. The study finds
that there in a statistically significant inverse relationship between ESG and bank
operational performance. Secondly, a positive relationship is observed between ESG and
bank financial performance. Similarly, a positive relationship is found between ESG and
market performance.
