Review of Environmental, Social, and Governance(ESG) in Banking Industry

This research paper reviewed Environmental, Social, and Governance (ESG) within the banking sector through addressing global trends and regulatory framework development. This paper provides insights about ESG in banking sector through an overview of the historical development of ESG in banks about three categories of ESG bonds, ESG disclosure and ESG regulatory frameworks. This paper also examines a gap analysis between the recent ESG global regulatory framework and standard and the ones to domestic banks, and analyzed the opportunities and challenges which are derived from strengthened ESG regulations for the domestic banks emphasizing that it is important for banks to get opportunities from the changes around ESG in banking industry for their sustainability.