Use of Esg-Investment Principles in the Selection of High-Performance Projects by Commercial Banks

Abstract

This paper investigates the utilization of Environmental, Social, and Governance (ESG) investment principles in the selection of high-performance projects by commercial banks. Employing a strategic lens, the study explores the interplay between ESG criteria and project selection within the commercial banking sector. Our findings reveal a positive correlation between the incorporation of ESG factors and enhanced financial performance, risk mitigation, and stakeholder trust. We critically interpret these insights, emphasizing their strategic implications for commercial banking strategies and policy frameworks. The study contends that ESG-conscious project selection not only fosters sustainable value creation but also positions commercial banks as resilient entities capable of navigating evolving market dynamics. In conclusion, the imperative for ESG integration extends beyond compliance, emerging as a strategic necessity for commercial banks committed to long-term viability and responsible financial practices.