Developing a Sustainability Credit Score System

Journal of Business Ethics

Volumn 127, Issue 2, 2015, Pages 283-296

  Zeidan, Rodrigo ^a,b   Boechat, Claudio ^a   Fleury, Angela ^a  

^a FUNDAÇÃO DOM CABRAL   (Brazil)

^b Fundação Dom Cabral ^*  (Brazil)

Author keywords

Banking industry; Corporate social responsibility; Equator Principles; Lending policies; Management practices; Risk management; Sustainability

Indexed keywords

EID: 84891523402     PISSN: 01674544     EISSN: 15730697     Source Type: Journal    
DOI: 10.1007/s10551-013-2034-2     Document Type: Article

References (40)

1. Adams, C. A., & Frost, G. R. (2008). Integrating sustainability reporting into management practices. Accounting Forum,32(4), 288–302.
2. Chih, H. L., Chih, H. H., & Chen, T. Y. (2010). On the determinants of corporate social responsibility: International evidence on the financial industry. Journal of Business Ethics,93(1), 115–135.
3. Churchill, G. A, Jr, & Peter, J. P. (1984). Research design effects on the reliability of rating scales: A meta-analysis. Journal of Marketing Research,21, 360–375.
4. Conley, J. M., & Williams, C. A. (2011). Global banks as global sustainability regulators: The Equator Principles. Law and Policy,33(4), 542–575.
5. Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory, a review and assessment. Journal of Management,37(1), 39–67.
6. Dhaliwal, D., Zhen, O., & Yang, A. T. (2011). Voluntary non-financial disclosures and the cost of equity capital: The initiation of corporate social responsibility reporting. The American Accounting Review,86(1), 59–100.
7. Duffie, D., & Singleton, K. J. (2012). Credit risk: Pricing, measurement, and management. Princeton: Princeton University Press.
8. Ghoul, S., Guedhami, O., Kwok, C. C., & Mishra, D. R. (2011). Does corporate social responsibility affect the cost of capital? Journal of Banking and Finance,35(9), 2388–2406.
9. Goss, A., & Roberts, G. S. (2011). The impact of corporate social responsibility on the cost of bank loans. Journal of Banking and Finance,35(7), 1794–1810.
10. Griffin, J. M., & Tang, D. Y. (2012). Did subjectivity play a role in CDO credit ratings? Journal of Finance,67(4), 1293–1328.
11. Grunert, J., Norden, L., & Weber, M. (2005). The role of non-financial factors in internal credit ratings. Journal of Banking and Finance,29(2), 509–531.
12. Herzel, S., Nicolosi, M., & Starica, C. (2012). The cost of sustainability in optimal portfolio decisions. European Journal of Finance,18(3–4), 333–349.
13. Hofer, C., Cantor, D. E., & Dai, J. (2012). The competitive determinants of a firm’s environmental management activities: Evidence from US manufacturing industries. Journal of Operations Management,30(1), 68–84.
14. Hu, V. I., & Scholtens, B. (2012). Corporate social responsibility policies of commercial banks in developing countries. Sustainable Development, forthcoming.
15. IBGE (2012) Retrieved April 4th, 2012, from http://www.ibge.gov.br.
16. Jeucken, M. (2001). Sustainable finance and banking: The financial sector and the future of the planet. London: Earthscan.
17. Jeucken, M., & Bouma, J. J. (2001). The changing environment of banks. In J. J. Bouma, M. Jeucken, & L. Klinkers (Eds.), Sustainable banking: The greening of finance. London: Greenleaf Publishing.
18. Jones, D., & Mingo, J. (1999). Credit risk modeling and internal capital allocation processes: Implications for a models-based regulatory bank capital standard. Journal of Economics and Business,51(2), 79–108.
19. Jornal da Cana (2012) Retrieved March 16, 2012, from http://www.jornalcana.com.br.
20. Konar, S., & Cohen, M. A. (2001). Does the market value environmental performance? Review of Economics and Statistics,83(2), 281–289.
21. KPMG (2012). Expect the unexpected: Building business value in a changing world. Retrieved April 13, 2013, from http://www.kpmg.com/dutchcaribbean/en/Documents/KPMG%20Expect_the_Unexpected_ExctveSmmry_FINAL_WebAccessible.pdf.
22. Lubin, D. A., & Esty, D. C. (2010). The sustainability imperative. Harvard Business Review,88(5), 42–50.
23. Nandy, M., & Lodh, S. (2012). Do banks value the eco-friendliness of firms in their corporate lending decision? Some empirical evidences. International Review of Financial Analysis,25(5), 83–93.
24. OECD (2012). OECD environmental outlook to 2050. The consequences of inaction. Retrieved February 02, 2013, from http://www.oecd.org/env/indicators-modelling-outlooks/oecdenvironmentaloutlookto2050theconsequencesofinaction.htm.
25. Pitelis, C. N. (2013). Towards a more ‘Ethically Correct’ governance for economic sustainability. Journal of Business Ethics,112(1), 1–11.
26. Richardson, B. J. (2009). Keeping ethical investment ethical: Regulatory issues for investing for sustainability. Journal of Business Ethics,87(4), 555–572.
27. Sanjeev, A. (2003). The art of scale development. Marketing Research,15(3), 10–12.
28. San-Jose, L., Retolaza, J. L., & Gutierrez-Goiria, J. (2011). Are ethical banks different? A comparative analysis using the radical affinity index. Journal of Business Ethics,100(1), 151–173.
29. Scholtens, B. (2006). Finance as a driver of corporate social responsibility. Journal of Business Ethics,68(1), 19–33.
30. Scholtens, B. (2009). Corporate social responsibility in the international banking industry. Journal of Business Ethics,86(2), 159–175.
31. Scholtens, B., & Dam, L. (2007). Banking on the Equator: Are banks that adopted the equator principles different from non-adopters? World Development,35(8), 1307–1328.
32. Singh, R. K., Murty, H. R., Gupta, S. K., & Dikshit, A. K. (2007). Development of composite sustainability performance index for steel industry. Ecological Indicators,7(3), 565–588.
33. Thoumy, M., & Vachon, S. (2012). Environmental projects and financial performance: Exploring the impact of project characteristics. International Journal of Production Economics,140(1), 28–34.
34. United Nations (2012). The future we want. RIO+20, United Nations Conference on Sustainable Development. Retrieved December 05, 2012, from https://rio20.un.org/sites/rio20.un.org/files/a-conf.216l-1_english.pdf.pdf.
35. United Nations Environment Programme (2011). Keeping track of our changing environment: From Rio to Rio+20 (1992–2012). Division of Early Warning and Assessment (DEWA). Retrieved November 23, 2012, from http://www.unep.org/geo/pdfs/keeping_track.pdf.
36. WBCSD (2010). Vision 2050: A new agenda for companies. Retrieved February 08, 2013, from http://www.wbcsd.org/WEB/PROJECTS/BZROLE/VISION2050-FULLREPORT_FINAL.PDF.
37. Weber, O. (2005). Sustainability benchmarking of European banks and financial service organizations. Corporate Social Responsibility and Environmental Management,12, 73–87.
38. Weber, O., Fenchel, M., & Scholz, R. (2008). Integration of environmental risks into the credit risk management process of European banks. Business Strategy and the Environment,17, 149–159.
39. Weber, O., Scholz, R., & Fenchel, M. (2010). Incorporating sustainability criteria into credit risk management. Business Strategy and the Environment,19, 39–50.
40. Wright, C. (2012). Global banks, the environment, and human rights: The impact of the Equator Principles on lending policies and practices. Global Environmental Politics,12(1), 56–77.