Climate Change, Sustainability and Corporate Social Responsibility: the Role of Financial Institutions

Climate change is one of the most critical issues that emerges in the debate on sustainability. Voluntary business initiatives, in the form of corporate social responsibility practices, can play a key role in promoting sustainable development, whose effectiveness depends on the responsible involvement of actors operating in the political, economic and societal sphere. Financial institutions, such as banks, play an important role with respect to sustainable development, since their activity may have relevant direct and indirect impacts on environment and society. This paper analyzes the state-of-the-art of green financial products and services in Europe, addressing some interrelated questions regarding ethical issues: Which is the effective involvement of banks in supporting sustainable development? To what extent is the diffusion of specialized financial services on the climate change issue part of a more comprehensive ethical view? Is there a relationship between the degree of importance and internalization of corporate social responsibility aspects within banks’ corporate governance and the number and quality of green/carbon services and products offered?