9:30am -10:40am Break out – Academic Paper Panel – Sustainable Banking and SRI funds (Session 1) Paper A: Corporate Governance, Sustainable Ethics and Financial Stability, Daniel Ofori-Sasu, George A. Donkor, Joshua Y. Abor, University of Ghana, Ghana Paper B: SRI Funds and Their True Nature Susana Meyers, I.F. Ferro, and M.J. Munoz-Torres, University of Jaume, Spain
Session Chair: Heather Hachigian, Royal Roads University
Paper A: Corporate Governance, Sustainable Ethics and Financial Stability: Lessons from Developing Economies
Daniel Ofori-Sasu, George A. Donkor, Joshua Y. Abor
Abstract: Sustainable banking involves carrying out banking operations and business activities with conscious consideration for the environment as well as the social impacts of these activities. Sustainable banking incorporate environmental, social and governance (ESG) considerations in the delivery of banking services. The benefits of sustainable banking, which range from improved reputation to improved investor confidence, have caused banks to shift from just managing their environmental and social risk to proactively exploring new opportunities offered by sustainability principles, while employing these to differentiate themselves in the market. This paper examines sustainable banking in developing markets. It covers sustainable banking and its importance. It discusses the triple bottom line, and sustainable and responsible investment of banks. The paper also examines sustainable banking principles and policies in Africa, the practice of sustainable banking in Africa, and sustainable banking as a driver of growth. The paper concludes with important policy implications.
Paper B: SRI Funds and Their True Nature
Meyers, S. M., Ferrero, I. F., and Muñoz-Torres, M. J.
Abstract: The growth of SRI funds from niche to mainstream has not been exempt doubts. The launch of new SRI funds and the repurposing of funds “greening” their names has been accompanied by concerns and references in the financial news around potential “greenwashing” cases in SRI funds. Are SRI funds conventional funds in disguise? The results from previous literature on the topic are mixed. The paper aims to test if SRI funds are true and consistent with their nature. We test if portfolio holdings of SRI funds exhibit higher ESG scores than their conventional counterparts from the same Fund Management company. Our paper adds to previous literature, as up to our knowledge, is the first paper to perform an ESG fund score analysis addressing the topic if “self-declared” SRI funds are true to their nature through a matched pair approach and with a multi-regional focus.