Exploring sustainable finance and ESG integration in commercial bank
Ghanashyam Tiwari, Mohan Bhandari, Neeta Dhusia Sharma, Bibek KarmacharyaPurpose
This study aims to examine how senior executives in Nepalese commercial banks conceptualize and implement sustainable finance, with a focus on integrating environmental, social and governance (ESG) practices.
Design/methodology/approach
A qualitative phenomenological approach was adopted. Semi-structured interviews were conducted with eight purposively selected executives, and data were analyzed using Colaizzi’s seven-step thematic framework using axial coding.
Findings
The study reveals varied understandings of sustainable finance, ranging from corporate social responsibility initiatives to ESG risk integration. Leadership commitment and personal values drive progress, while regulatory uncertainty, limited ESG tools and profitability pressures hinder implementation. A fragmented approach emerges, reflecting the tension between short-term financial goals and long-term sustainability.
Research limitations/implications
The focus on commercial banks limits generalizability across other financial institutions, but the findings highlight important directions for future research on ESG integration in frontier markets.
Practical implications
The study provides actionable insights for banks to strengthen leadership engagement, build internal ESG capacity and design policies that integrate sustainability into financial decisions.
Social implications
By highlighting the role of banks in addressing climate change, governance challenges and community development, the research shows how sustainable finance can promote inclusive and responsible growth.
Originality/value
This study contributes originality by exploring sustainable finance through the leadership perspective in a frontier market context, offering novel insights into ESG integration in Nepalese commercial banking and advocating systemic reforms for sustainable banking practices.