Environment, Social, Governance, and Performance in Far East Asia for the Period of 2018-2021

Abstract

This study investigates how banking performance in the Far East Asia region is impacted by environmental sustainability through sustainability reporting using ESG Index as a proxy. For the 2018-2021 period, 89 Far East Asia stock exchange-listed companies that routinely provide ESG scores are the sample for this study. The environment sustainability dimension in this study uses the ESG index as a proxy. The research analysis starts with descriptive statistical analysis to summarize the sample data. Then regression was performed using the Fixed Effect Model method for all research models to test the variables simultaneously. This study discovered a detrimental effect of ESG as a proxy of environmental sustainability on banking performance. However, they also discovered a beneficial relationship between one ESG dimension - corporate governance - on banking performance.