Sustainability Practices and Financial Outcomes in the Banking Sector: A Systematic Review of Empirical Evidence
DOI:
https://doi.org/10.70142/jbs.v1i2.122Keywords:
Sustainability Practices, Financial Performance, Banking Sector, ESG, Systematic Literature ReviewAbstract
This study provides a qualitative systematic literature review examining the relationship between sustainability practices and financial outcomes in the banking sector. Drawing on peer reviewed empirical studies published between 2015 and 2025, the review synthesizes evidence on how environmental, social, and governance (ESG) initiatives influence bank performance indicators, including profitability, risk management, and market valuation. The findings reveal a generally positive association between sustainability practices and financial performance, particularly in the long term, driven by enhanced reputation, improved risk mitigation, and stronger stakeholder trust. However, the results also indicate contextual variations depending on regulatory environments, geographic regions, and measurement approaches. The review highlights methodological inconsistencies and calls for more standardized ESG metrics in future research. Overall, sustainability is positioned not merely as an ethical obligation but as a strategic driver of financial resilience and competitive advantage in banking.
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