Purpose Following Agenda 2030, the integration of Sustainable Development Goals (SDGs) into banking strategies has become essential for promoting global sustainability and responsible financial practices. This study aims to examine how the financial characteristics of banks influence their efforts towards achieving the SDGs. Design/methodology/approach A fixed-effect panel regression is used to analyse a sample of 646 publicly listed banks across 61 countries, observed from 2018 to 2023. The data are sourced from the Refinitiv Eikon database, with the dependent variable pertaining to the SDGs calculated as a composite score. Findings Empirical results show that larger and less profitable banks reach better performance in terms of contribution to the SDGs. Instead, the level of leverage does not appear to be a significant influential factor in fostering the support of the SDGs. Originality/value Theoretically, this work enriches the academic literature on SDG performance and confirms the relevance of stakeholder theory. Managerially, this study provides valuable insights for banks integrating the SDGs into their business models and for policymakers identifying strategies to encourage sustainable practices.
Read full abstract