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Carbon neutrality: The role of banks in optimal environmental management strategies

Chaudhry, S.M., Saeed, A., Ahmed, R. (2021) Carbon neutrality: The role of banks in optimal environmental management strategies. Journal of Environmental Management, 299 . Article Number 113545. ISSN 0301-4797. (doi:10.1016/j.jenvman.2021.113545) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:96229)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL:
https://doi.org/10.1016/j.jenvman.2021.113545

Abstract

This study explores the ecological ambitions of banks by studying the coincidence of economic realities with environmental management strategies. We address this question by studying the environmental performance of US banks and its impact on their tail risk as US is not committed to carbon neutrality in COP 21. We proxy economic reality with tail risk of banks and employ a novel extreme value theory to measure this. We use Asset4 ESG data for environmental performance score and test our hypothesis with a sample of 256 US banks. The results indicate that the US banks are ecologically ambitious and their environmental strategies are likely to reduce their tail risk. This provides evidence that better environmental strategies do coincide with the economic realities. We test the consistency of our results by using alternate proxies for tail risk and find our results robust. Our results are also not driven by endogeneity concerns. Finally, our additional results show that the nature of relationship differs with corporate governance levels, CSR committee existence, institutional ownership presence and crisis period. © 2021 Elsevier Ltd

Item Type: Article
DOI/Identification number: 10.1016/j.jenvman.2021.113545
Uncontrolled keywords: carbon, environmental economics; environmental management; environmental risk; governance approach; optimization; pollution tax; strategic approach, Article; carbon balance; carbon footprint; econometric model; environmental change; environmental management; environmental protection; extreme value theory; industry; statistical analysis; United States; environmental protection; organization; organization and management; social status, United States, Carbon; Conservation of Natural Resources; Organizations; Ownership; Social Conditions
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Divisions > Kent Business School - Division > Department of Accounting and Finance
Depositing User: Rizwan Ahmed
Date Deposited: 16 Aug 2022 10:49 UTC
Last Modified: 17 Aug 2022 09:19 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/96229 (The current URI for this page, for reference purposes)

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