Internal Capacity Research Articles

The Relationship Between Governance Capacity and Business Performance: A Case Study of Vietnam’s Auto Auxiliary Industry

The purpose of this study was to assess the present business performance of Vietnam’s auto auxiliary industry. Another aim was to identify the factors, including organizational factors, internal capacities, and external networks, that positively and negatively impact the governance capacity of Vietnam’s auto auxiliary industry. Finally, the relationship between governance and business performance within the context of Vietnam’s auto auxiliary industry was examined in the study. The research methodology employed a comprehensive approach, combining Partial Least Squares Structural Equation Modeling (PLS-SEM) utilizing Smart-PLS 3.0, interviews conducted through the Delphi technique, and an exhaustive table study. Three hundred questionnaires were distributed, yielding 265 responses from diverse participants, including private enterprises, state-owned enterprises, joint-venture enterprises, and governmental bodies. The results of the study were that Governance Capacity mediated the relationship between organizational factors (Government Policies, Market Competition, Globalization and Supply Chains, Economic Conditions, Environmental and Sustainability Concerns, and Human Resources Expertise) and Business Performance within Vietnam’s auto auxiliary industry. The recommendations provided practical insights for industry stakeholders seeking to improve governance practices and optimize business performance within Vietnam’s auto auxiliary sector.

Factors affecting the effectiveness of internal audit at non–business units in Vietnam

The objective of this study is to determine the influence of factors on the effectiveness of internal audit at public non–business units in Vietnam. Using qualitative and quantitative research methods, the research sample includes 215 businesses, and data processing using SmartPLS software. Content of research on factors such as senior management support, internal audit independence, motivation of internal auditors, level of application of information technology, and Internal audit capacity to the effectiveness of internal audit at public non–business units in Vietnam. Research results show that senior management support, internal audit independence, motivation of internal auditors, level of information technology application, and Internal audit capacity has a positive impact on the effectiveness of internal auditing at public non–business units in Vietnam. Finally, the study concludes and suggests implications for improving the effectiveness of internal at public non–business units in Vietnam and overcoming weaknesses in the process of implementing internal audit by fully equipping auditors with professional knowledge, maintaining the independence of the audit department, and motivating them to work.

Evaluating the environmental and financial performance of additive manufacturing at scale in the consumer goods industry

As corporate sustainability commitments and environmental regulations intensify, additive manufacturing users must balance the technology's maturing economic value with its application- and process-dependent environmental impact. With limited methods to navigate this multi-dimensional variability at scale, additive manufacturing stakeholders face challenges when making growth and investment decisions. To bridge this gap, this study applies system modeling methodologies to a case study of an additive manufacturing service unit in the sporting goods industry aiming to improve its product portfolio's economic and environmental impacts and scale its capabilities. A tradespace model compares the value of additive manufacturing to injection molding across product characteristics and life cycle decisions, and a flexible design analysis evaluates additive manufacturing scaling strategies, considering market and technology uncertainties. The tradespace analysis reveals that additive manufacturing reduces product environmental footprint by 95 % and unit cost by 93 % for 1-to-20-part production volumes compared to injection molding, while injection molding lowers environmental footprint by 72 % and unit cost by 56 % for 100-to-50,000-part production volumes compared to additive manufacturing. This analysis also suggests that additive manufacturing's economic and environmental value increases when located in geographies with low-carbon footprint energy and when manufacturing very low production quantities or small parts that maximize build capacity. The flexible design analysis indicates that expanding internal production capacity to a larger facility with renewable power, once higher demand is confirmed, can reduce part environmental footprint by up to 49 % and increase Net Present Value by more than 600 % compared to maintaining current operations that leverage external service bureaus. The results demonstrate the potential of these system modeling methodologies in integrating financial and environmental impact assessments at the company level for strategic scaling decisions. Future model developments are recommended to incorporate additive manufacturing's unique design impacts on the product life cycle, more nuance in the impact analyses, and the social component of the technology's sustainability.

A Comparative Performance Analysis of Türkiye's Health System within OECD Countries

A country's health system stands as one of its most critical infrastructures, significantly influencing the well-being of its citizens. In line with the World Health Organization's (WHO) widely accepted definition, a country's health system involves all organizations, people, and actions whose primary purpose is to promote, restore, or maintain health (World Health Organization., 2007). As indicated in this definition, a health system carries characteristics of complex systems posing significant challenges in its management and maintenance. The complex nature of the health system also challenges the country's policymakers to improve the outcomes of the health system. Examining specific key performance indicators of the health system can assist policymakers in gaining deeper insights into its internal capacities and identifying areas for improvement. This paper provides a comparative performance analysis of Türkiye’s health system compared to other Organization for Economic Co-operation and Development (OECD) countries using selected key performance indicators of the health system's capacity and resources. The methodology involves a comprehensive review of existing literature, data collection and analysis, and performance evaluation using the Data Envelopment Analysis (DEA) technique. In this performance analysis, health systems capacity-related indicators, such as health expenditure, number of doctors, number of nurses, and number of hospital beds, are used as input variables, and life expectancy at birth and citizens’ satisfaction with the healthcare system are output variables. The analysis intends to identify best practices and potential areas for improvement within Türkiye’s health system by benchmarking insights from other OECD countries.

State-led Maritime Governance, Education and Training Nexus in South Africa

The maritime environment has a significant socio-economic impact on nations, regional and global economies. However, it also experiences many challenges related to safety, security, Education and Training (E & T) which stakeholders such as businesses and government through State institutions play a crucial role in addressing. In addition to high global labour demands, E & T challenges have related to the decreasing number of youth taking up maritime E & T. In addition, technological advancements affect costs, standards, and quality of maritime ET. The Republic of South Africa (RSA) has not been immune to these challenges. Public higher E & T institutions in RSA are the primary providers of tertiary maritime E & T but remain confronted by numerous challenges tied to organisational resources, State funding and the growing demand for increased internal and external capacity. This study’s objective was to examine maritime State-led interventions and challenges in selected public higher E & T institutions offering maritime studies in the coastal province of KwaZulu-Natal (KZN), RSA. Guided by a Systems Thinking approach, this empirical study adopted a qualitative research methodology utilizing interviews with key knowledge holders and secondary data. It was found that there exists a consensual view that higher E & T institutions offering maritime studies in the province are well positioned to play a more meaningful role in addressing the country’s high unemployment rate. However, the current conditions in maritime E & T have undermined this and resulted in the pursuit of international partnerships to address local deficiencies. These findings are significant to stakeholders involved in maritime higher E & T, State-led maritime interventions, policymaking, governance, management, leadership and administration. The findings of the study also point to the need for a holistic understanding of maritime issues and challenges as maritime E & T is a complex global social space. This could eventually facilitate innovation, enhance leadership and contribute to meaningful and crucial partnerships between developed and more developing nations.

Board characteristics and profitability in sharia-compliant and non-sharia-compliant firms: beyond mere ceremony?

PurposeThis study compares the profitability of sharia-compliant firms (SCFs) and non-sharia-compliant firms (NSCFs) and explores the causal links among board of directors (BODs) characteristics (size, gender, meeting frequency, tenure, turnover and compensation), sharia compliance, capital structure and profitability. Specifically, sharia compliance and capital structure serve as moderators.Design/methodology/approachA total of 72 SCFs and 65 NSCFs were investigated during 2011–2019, resulting in 1,644 data. A t-test was used to compare profitability, and causal relationships were explored through panel data regression.FindingsSCFs outperform NSCFs in profitability in 24 of 36 t-tests. Surprisingly, 87 out of 864 instances of sharia violations were found in SCFs. Despite purifying sharia-compliant stocks from violations, the board negatively affected sharia compliance. Furthermore, sharia compliance contradicts the board’s tendency to increase profitability, implying a ceremonial screening, which reveals the board’s reluctance to incorporate sharia compliance into their management style. In contrast, boards in NSCFs rely more on their internal strengths and capacities to influence profitability, as they understand the adverse impact of debt.Practical implicationsThe findings of this study are beneficial for evaluating Islamic loopholes for both boards that are apathetic to sharia compliance and regulators who are not transparent in Islamic financial screening.Originality/valueAcademic literature concentrates on comparing Islamic banks with conventional banks, while the comparison of corporate governance and management styles in SCF vs. NSCF is minimal. Additionally, a novel measurement, the Stapel scale, is proposed for finding the purity of Islamic stocks, which is most suitable when regulators and firms conduct Islamic loopholes.

Quantitative cytotoxicity analysis of antibacterial Janus nanoparticles in immune and cancer cells

Background Nanoparticles (NPs) hold promise as alternatives to antibiotics in the fight against multi-drug-resistant bacteria. However, concerns about their cytotoxicity, particularly their effects on mammalian cells, must be thoroughly addressed to ensure therapeutic safety. Amphiphilic Janus NPs, which have segregated hydrophobic and polycationic ligands on two hemispheres, have previously been shown to exhibit potent antibacterial activity. Methods In this study, we evaluated the cytotoxicity of amphiphilic Janus NPs in immune and cancer cell lines. Cytotoxicity assays were performed to assess the effects of Janus NPs on cell viability and membrane integrity, with a particular focus on how internalization of the nanoparticles influenced cellular responses. Results The results revealed that both immune and cancer cells exhibited negligible cytotoxic effects when exposed to Janus NPs. However, phagocytic immune cells demonstrated greater susceptibility to membrane damage and viability loss, suggesting that internalization plays a significant role in nanoparticle-induced cytotoxicity. Conclusions Amphiphilic Janus NPs show great potential as highly effective antibacterial agents with minimal cytotoxicity. While immune cells may be more vulnerable to nanoparticle-induced damage due to their internalization capacity, these findings support the further investigation of Janus NPs for clinical applications.

Development and Validation of the Short Form (JAEN-10) of the Joint Assessment of Equilibrium and Neuromotor Status Scale (JAEN-20).

Objectives: The objective of this study was to develop and validate the short version of The Joint Assessment of Equilibrium and Neuromotor Status Scale (JAEN scale) for use in women with Fibromyalgia Syndrome (FMS) to make the balance disorder measurement process more efficient. Methods: A cross-sectional observational validation study was conducted. Fifty-six women with FMS and forty-four healthy controls were included. Certain items from the original tool were selected with the aim of (1) improving internal consistency by reducing item redundancy and (2) obtaining a diagnostic capacity with an area under the ROC curve (AUC) greater than 0.70 for discriminating FMS patients and fallers. The internal consistency, factorial validity, concurrent validity and diagnostic capacity of the new tool were analyzed. Results: Factorial analysis showed a two-factor structure that explained 72% of the variance. Cronbach alpha coefficients of 0.904 were obtained for the total score of the JAEN-10 items. Concurrent validity analysis showed strong correlations of the JAEN-10 with other instruments that measured quality of life, postural balance or disability related to dizziness. The score of the JAEN-10 items showed an AUC of 0.858 with a sensitivity of 64.29 and a specificity of 95.45 for discriminating between FMS and healthy controls, and an AUC of 0.835 with a sensitivity of 90.48 and a specificity of 67.24 for discriminating between fallers and non-fallers. Conclusions: The 10-item JAEN scale is a valid instrument for discriminating between subjects with or without FMS and between fallers and non-fallers. Its psychometric properties are good and are similar to those of the original 20-item scale. Moreover, it is quicker to complete, which may be relevant for subjects with a tendency to experience fatigue.

Borrowing Regulatory Capacity in Middle-Income Countries during Public Health Crises: Brazil, Regulatory Reliance, and the Politics of COVD-19 Vaccine Regulation

The COVID-19 pandemic underscored the critical role of states’ regulatory capacities. Countries had to authorize novel vaccine technologies in the context of scientific uncertainty and political pressure, issues particularly acute in middle-income countries (MICs) less familiar with the procedures needed to streamline regulatory processes during a crisis. How did regulatory agencies in countries still building their regulatory capacities expedite the authorization of new COVID-19 vaccines to combat the pandemic? How did they navigate political pressures to expedite vaccine approval while maintaining safety and efficacy standards? We explore these questions through the case of Brazil, which has one of Latin America’s most highly-regarded regulatory authorities, but was subject to acute political conflicts. In response to these tensions, the Brazilian National Health Surveillance Agency (Anvisa) leveraged “regulatory reliance” to expedite the authorization of COVID-19 vaccines. Regulatory reliance, the practice of relying on the decisions and procedures of external advanced regulatory agencies, allowed Anvisa to bolster its internal capacity and navigate domestic political challenges. This paper highlights the dual benefits of regulatory reliance: enhancing regulatory efficiency during crises and mitigating politicization pressures. The findings demonstrate that MICs can better respond to public health emergencies by integrating external expertise, thus contributing to global regulatory resilience. In addition, the implications extend to broader regulatory political economy discussions, suggesting that reliance mechanisms can fortify less mature regulatory systems and promote convergence even in the absence of global harmonization.

Synthesis and Evaluation of High-Temperature Resistant Polymer Plugging Agent for Water-Based Drilling Fluids.

As the exploration and development of deep wells have emerged as a key option to extract more oil and gas resources trapped underneath, high-temperature formations impose stringent requirements on the thermal stability of plugging agents used in water-based drilling fluids. In this work, β-cyclodextrin, with its unique conical toroidal rigid stable structure and internal hydrophobic and external hydrophilic special adsorption capacity, was first grafted with maleic anhydride to prepare a silicone polymer and then copolymerized with dimethyldiallylammonium chloride (DMDAAC) in the presence of coupling agent vinyltriethoxysilane (A151) and cross-linking divinylbenzene (DVD) to finally obtain a high-temperature resistant plugging agent (AMMD). Subsequently, the molecular structure was evidenced and the performance of AMMD was examined in the polysulfonate-base fluid via a series of tests including high-temperature high-pressure filtration loss, sand tray plugging, and drilling fluid displacement, and the results were compared with the counterpart Soltex under the same conditions. The optimal synthesis conditions for the plugging agent were found as total monomer concentration of 25%, initiator mass fraction of 1% (based on the mass of monomers), monomer feed ratio of m (DVD):m(A151):m(DMDAAC):m(MD) of 15:3:2:15, pH value of 10, reaction temperature of 75 °C, and reaction time of 4 h. FT-IR spectra indicated that the monomers used to prepare AMMD were successfully involved in the reaction for the design of the plugging agent structure. TGA showed that AMMD has a total weight loss of about 35.98% in the range of 284 to 453 °C. Moreover, the addition of 3%AMMD into the base fluid produced a 4.38-fold and 3.8-fold filtration loss control over 60 min at 200 °C using 400 and 800 mD sand trays, respectively, which were comparatively higher than the commercially available Soltex (ca. 3.72-fold and 3.14-fold, respectively, using 400 and 800 mD). This then contributed to AMMD's superior plugging performance in drilling fluid based on the drilling fluid displacement experiment, implying that AMMD could find potential use as a plugging agent in polysulfonate drilling fluid under severe geothermal conditions.

Layered Double Hydroxides as Systems for Capturing Small-Molecule Air Pollutants: A Density Functional Theory Study.

Air pollutants are usually formed by easily spreading small molecules, representing a severe problem for human health, especially in urban centers. Despite the efforts to stem their diffusion, many diseases are still associated with exposure to these molecules. The present study focuses on modeling and designing two-dimensional systems called Layered Double Hydroxides (LDHs), which can potentially trap these molecules. For this purpose, a Density Functional Theory (DFT) approach has been used to study the role of the elemental composition of LDHs, the type of counterion, and the ability of these systems to intercalate NO2 and SO2 between the LDH layers. The results demonstrated how the counterion determines the different possible spacing between the layers, modulating the internalization capacity of pollutants and determining the stability degree of the system for a long-lasting effect. The variations in structural properties, the density of states (DOS), and the description of the charge transfer have been reported, thus allowing the investigation of aspects that are difficult to observe from an experimental point of view and, at the same time, providing essential details for the effective development of systems that can counteract the spread of air pollutants.

Efektivitas Organisasi Wanita Islam Alkhairaat (WIA) dalam Pengembangan Dakwah di Kota Palu

This research aims to explore the effectiveness of Wanita Islam Alkhairaat (WIA) in da'wah development in Palu City. Using a qualitative approach and case study method, this research analyses the da'wah programs implemented by WIA as well as the factors that influence its effectiveness. Data were collected through in-depth interviews with WIA administrators and the community involved, as well as direct observation and document study related to WIA activities. The results showed that WIA has implemented various da'wah programmes that successfully empower women and increase public awareness of Islamic values. However, there are supporting and inhibiting factors that affect the effectiveness of da'wah, such as community support, limited resources, and challenges in reaching a wider audience, especially in Eastern Indonesia such as North Kalimantan, Gorontalo, North Maluku, West Papua, and other provinces. This research is expected to contribute to the literature on the role of Islamic women's organisations in da'wah, as well as provide recommendations for improving the effectiveness of WIA's da'wah activities in the future. To overcome these challenges, a sustainable effort is needed from WIA in increasing the internal capacity of its members in all regions in Eastern Indonesia, especially in Palu City, Central Sulawesi.

Dimensions of community context that affect coalition effectiveness: development of an instrument

ABSTRACT This study investigates the role of multidimensional contextual factors on the perceived effectiveness of community coalitions engaged in the Strategic Prevention Framework (SPF) for addressing substance misuse. We introduced and validated an instrument for assessing a broad range of contextual factors for coalition development and program implementation. This research also scrutinizes how contextual factors impact coalition effectiveness, considering internal capacity indicators as mediators. Data were sourced from 295 and 297 coalition members across 2015 and 2016, respectively, involved in SPF initiatives within a northeastern state in the United States. Our analysis identifies three critical dimensions of contextual factors – collaboration and resources, politics, and demographics and norms – that significantly affect the perceived management and program effectiveness through different mechanisms. The findings underline the importance of prevention coalitions to comprehensively assess community contexts and strategically address contextual challenges to enhance their impact on substance misuse prevention.

АНАЛІЗ ВПЛИВУ ІНДИВІДУАЛЬНИХ ХАРАКТЕРИСТИК КОМІРОК LiFePO4 НА ПАРАМЕТРИ РОБОТИ АКУМУЛЯТОРНИХ ЗБІРОК

The article analyzes the influence of the individual characteristics of lithium-iron-phosphate (LiFePO4) cells on the overall efficiency, stability and duration of operation of battery assemblies. The influence of such parameters as internal resistance, polarization resistance and capacity on the operation of battery assemblies under different load regimes and changes in temperature conditions was studied. It was found that these parameters can vary significantly between cells within the same assembly, which leads to an imbalance during the operation of the battery system. Such an imbalance causes an uneven distribution of charge between the cells, which reduces the overall performance of the system, accelerates the degradation of the cells and shortens their service life. To overcome these problems, the use of active balancing methods based on Unscented Kalman Filter (UKF) algorithms was proposed. The application of UKF allows for dynamic evaluation of the state of charge (SOC) of each cell and adjustment of system parameters in real time, which provides more accurate management of battery assemblies in conditions of variable external factors such as temperature and current loads. Special attention is paid to online identification of battery parameters, such as polarization resistance and capacity, which change over time due to cell aging. The conducted studies confirmed that constant monitoring of temperature regimes is critically important for maintaining stable operation of battery cells, preventing overheating and ensuring uniform load distribution. The performed simulation confirmed the effectiveness of the application of adaptive methods of balancing and temperature control, which allows to increase the reliability and overall performance of battery assemblies.

An Exploration of Human and Social Capital Factors of Desistance for Female Offenders in Singapore

This study applies qualitative methods to understand factors that are relevant for desistance in women. The narratives of 12 women living in Singapore and in the community for the past five years were studied to uncover pathways to desistance. Using the concepts of Human and Social Capital adapted from the Good Lives Model, we found that the majority of women in this sample indicated values and internal capacities, self-efficacy, identity and connectedness to their religion as crucial to their continued stay in the community; congruent with the literature in North American studies. Additionally, all women mentioned their social capital as an important factor for recovery, indicating factors such as positive relationships and external support from stakeholders. Overall, this study illuminated several pathways that offer a deeper understanding of desistance for women exiting the criminal justice system.

Examining the School Climate Influence on Jamaican Secondary School Students: A Comprehensive Literature Review

This article synthesises the literature on the socioecological factors within the school climate - quality and character of school life (Cohen, 2009) influencing adolescents’ resilience. The review focuses on social relationships and the mechanisms used for teaching and learning practices. Resilience is a positive development outcome resulting from a triadic interactive process between the adolescent, the internal capacity, and the socioecological factors within the environment (Ungar, 2008). Changes imposed by COVID-19 on teaching and learning practices assumedly altered the school climate and are known to impact adolescents’ psychosocial well-being. Transforming the school climate at its minimum will require improving social relationships, communicating expectations, and creating a school environment where students will feel safe. Giving students autonomy through active and productive engagement in decisions that affect their developmental outcomes is critical for success. Expansion of this study requires applying a methodological approach that allows for students’ perspectives of the school climate, careful measurement of their resilience levels and lived experiences of students and other school personnel.

Technical Progress And Technological Dependence In Developing Economies

This study aims to analyse the concept of endogenous technical progress and its implications for the development of emerging markets. The discussion focuses on the ability of developing countries to assimilate and adapt external technologies and the importance of building internal research and development capacities. The analysis examines the challenges these countries face in achieving sustainable technological autonomy and the impact of multinational companies on the technological evolution of local industries. The role of state intervention is explored as a crucial factor in overcoming the limitations imposed by international competition and fostering an environment conducive to technological innovation. The study highlights the need for integrated strategies, combining the adoption of external innovations with efforts to strengthen domestic technological capabilities, aiming for independent and sustainable economic growth.

Challenges and opportunities for enhancing groundwater data access and usability in low- and middle-income countries: insights and recommendations from WaSH researchers and practitioners

ABSTRACT Groundwater provides more than half of all water for drinking and irrigation worldwide. Monitoring and managing groundwater resources is essential to achieve the Sustainable Development Goals. However, groundwater resources need to be better monitored. We explored practical approaches to improve groundwater monitoring for informed decision-making, focusing on low- and middle-income country settings. Case studies from a 2023 UNC Water and Health Conference side event highlighted innovative approaches, including open-source data modeling, groundwater monitoring in humanitarian contexts, and using in situ sensors to monitor drought resilience. The case studies described field data integration, remote sensing, and technology (e.g., Modflow-USG, ModelMuse, Drought Resilience Impact Platform). Barriers to groundwater data use were identified by side event participants, including inadequate data access, insufficient collaboration and leadership, and challenges in integrating diverse data and technology. Side event recommendations included creating a central groundwater monitoring data repository, building greater hydrogeology capacity in the WaSH sector, and increasing funding for data collection and monitoring. We urge government leaders to develop regulations and build internal capacity for sustainable groundwater management. This comprehensive approach aims to address challenges and promote informed decision-making for the long-term sustainability of groundwater resources.

An in-Depth Analysis of Internal Capabilities and Competitive Strategies in South-South Nigeria

In the ever-changing business environment of South-South Nigeria, it was crucial to comprehend internal capabilities and competitive tactics to achieve continuous development and success. This study aimed to fill the knowledge gap by thoroughly examining the internal capabilities and competitive strategies designed to suit south-south Nigeria’s distinctive socio-economic conditions. Utilising current theoretical frameworks and empirical data, this research assessed the internal capabilities of businesses, analysed their competitive tactics, and investigated the variables that influence the strategic environment in the area. The research methodology included surveys and documented analysis. The results uncover notable obstacles in infrastructure, financial availability, and technology implementation, which affect companies’ internal capabilities. Notwithstanding these challenges, companies exhibit perseverance and ingenuity in their competitive approaches, such as distinguishing their products, achieving cost leadership, expanding into new markets, and forming strategic partnerships. The relationship between a company’s internal capabilities and its competitive strategies highlights the significance of investing in human resources, infrastructure, and technology to improve competitiveness. The report suggests that to fully realise the potential of South-South Nigeria and promote sustainable economic growth, it was recommended to implement comprehensive development plans that prioritise investments in infrastructure, skills development, technology, and strategic alliances. Keywords: Internal capacities, Competitive tactics, Strategic environment, Infrastructure, People resources

Assessing the impact of environmental component on the development of Russian banks applying ESG policy

Subject. The article discusses operations of steadily developing Russian banks in the context of environmental component. Objectives. The aim is to identify patterns in functioning of Russian banks, applying ESG policy in their activities, under the influence of environmental factors, to improve the management of their development. Methods. The study employs regression analysis. We selected 26 Russian banks based on ESG ratings, formed an empirical base for 2011–2020 from open sources (financial and economic indicators and macro-level indicators characterizing the environmental impact by the activities of economic entities), built a linear regression model in MS Excel. Results. The constructed regression model helped reveal that the indicator “Recycling and disposal of production and consumption waste in the Russian Federation” has a significant positive impact on the pretax profit of banks applying ESG policy. However, a negative trend in the impact of banks on the environment was identified in terms of connection between the resulting indicator and the indicator “Primary energy intensity level”. This suggests that the internal capacity of banks to implement the environmental component is not sufficiently developed and used. Conclusions. The findings can be used both at the macro and micro level when generating the strategy and tactics for ESG banking development. The offered regression modeling technique can be used to analyze the role of environmental component in the activities of banks in other countries, which implement ESG policy.