Unveiling sustainable practices in financial institutions: A bibliometric analysis cum meta-analytical review on enhancing financial performance

Abstract

The heightened awareness of environmental and social concerns has prompted businesses, including financial institutions (hereto FIs), to incorporate non-financial factors into their operations for long-term sustainability and value creation. Despite FI's crucial role in resource allocation and national stability, there remains a notable gap in comprehensive research on the significance of sustainable practices for driving financial performance (hereto FP) within these institutions. This study addresses this gap through a systematic review of 533 articles from (1983–2024), employing bibliometric analysis to map key contributors, themes, and future research directions. Additionally, a meta-analysis of 40 articles assesses the relationship between sustainable practices and banks' FP. Results show a positive yet weak association between the two, suggesting that banks have not fully embraced sustainable principles in it. Social and governance practices positively correlated with FP, while environmental factors exhibit a negative relationship. This may be due to the required investment, the time differential to materialize the same, and other factors adhering to the relationship, such as innovation, development of sustainable products, or adherence to sustainable processes for screening investment choices. The study concludes by discussing implications and offering suggestions for further research.