Incorporating ESG Metrics into Credit Risk Assessment
Adaptive Frameworks and Sector-Specific Insights
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- Description
- Contents
- About
Incorporating ESG Metrics into Credit Risk Assessment examines the profound sustainability challenges facing today’s financial systems and the pivotal role that banks play in shaping socio‑ecological outcomes. As climate change, resource depletion, and systemic environmental degradation intensify, conventional lending practices often remain misaligned with global sustainability goals. This timely work argues that Credit Risk Assessment (CRA)—a core banking function—holds untapped potential to bridge this gap. By embedding Environmental, Social, and Governance (ESG) considerations into risk evaluation, financial institutions can move beyond narrow profitability metrics toward approaches that promote long‑term resilience.
Building on conceptual foundations, the book provides an in‑depth exploration of how banks in North America and Europe are applying sustainability principles within real‑world credit assessment practices. Drawing on semi‑structured interviews, sectoral analysis, and case studies, it highlights evolving best practices as well as persistent challenges—including data limitations, gaps in systems‑thinking competencies, and the complexity of aligning CRA with global targets such as the UN Sustainable Development Goals. The result is an essential guide for financial institutions and academics seeking to balance short‑term risk management imperatives with the long‑term demands of sustainable, equitable, and future‑proof finance.
Chapter 1. ESG Integration in Credit Risk Management; Vlora Prenaj, Iliriana Miftari, Leke Pula, and Berat Rukiqi
- Chapter 2. Integrating Environmental, Social, and Governance Factors into Credit Risk Frameworks: A Dynamic Approach to ESG-Enhanced Portfolio Risk Management; Sandeep Gupta, Udit Mamodiya, and Vasileios Paliktzoglou
- Chapter 3. Regulatory and Market Forces Shaping ESG Credit Strategies Compliance; Manisha Singh and Sonali Srivastava
- Chapter 4. When Rules Meet Risk: Understanding the Impact of Banking Regulation on Market Volatility; Manali Agrawal
- Chapter 5. The Impact of Artificial Intelligence on Regulation of Financial Services: A Case Study for Western Balkans; Albulena Shala and Valentin Toçi
- Chapter 6. ESG–FIN Bridge Model: Integrating Sustainability into Credit Risk Frameworks in Banking; M. Thamizhselvi, Priyanka Pegu Narah, and Veto Dey
- Chapter 7. Artificial Intelligence-Driven ESG Analytics and Risk Governance: Advancing Credit Assessment in Emerging Markets; Rubee Singh, Azamat Ali, Wasswa Shafik, and Vikas Kumar
- Chapter 8. Trust and Transparency in AI-Driven Credit Evaluation: A Framework for Ethical and Accountable Finance in India; Bhuwan Gupta and Akash Kumar Arya
- Chapter 9. People Analytics and ESG Metrics: A Smart Approach to Designing Responsible Behavior; Behzad Mohammadian
- Chapter 10. A Full-Stack Framework for Financial Analytics and Budgeting: Enhancing Credit Risk Assessment through Integrated Development; Gopika G. S., Vignesh P., Vijay R., SreeKrishna M., Rajasree R. S., Sivaparthipan C. B., and Christo Ananth
- Chapter 11. Leveraging Digital Information Systems for ESG Data Quality and Credit Risk Assessment in Emerging Economies: A Nigerian Empirical Case Study; Oladayo Daniel Oyetunji
- Chapter 12. Leveraging Technology in ESG and SDG Credit Portfolios; Nikhil Kumar Goyal, Udit Mamodiya, and Vasileios Paliktzoglou
- Chapter 13. Cultural Contexts in Sustainable Lending: Adapting ESG Credit Frameworks for Retail and SME Markets; Rajitha Ramachandran
- Chapter 14. Financial Capacity and Market Incentives as Drivers of ESG Engagement in Energy Firms: A Conceptual Framework; Shivi Khanna and Bhoomika Batra
- Chapter 15. ESG and Climate-Risk Analytics in Agriculture Lending: A Fintech-Led Cross-Country Study; Harsimran Kaur, Sukhpreet Kaur, Pardeep Bawa Sharma, and András Szeberényi
- Chapter 16. Cross-Border ESG Investments in the Pharmaceutical Industry: Contradictions, Governance, and Strategic Pathways; B. Kishore Babu, Daniel Pilli, Nagaraja Kumari, and Meka Varudhini
- Chapter 17. The Influence of AI Credit Scoring Models on Economic Inclusion; V. P. Yogamanieswaran, K. Sampritha, and P. Nivetha
- Chapter 18. Understanding ESG Vulnerabilities through Sectoral Comparison: The Case of Selected Companies in India; Surajit Das, Meghdoot Ghosh, Rahul Kumar Ghosh, and Sanju Das
José I. Rojas-Méndez is a Professor of International Business and Marketing at the Sprott School of Business, Carleton University, Canada.
Pushan Kumar Dutta is an Associate Professor at Amity University, India.
Adel Ben Youssef is a Professor of economics (HDR) at the Université Côte d'Azur, France.
Vasileios Paliktzoglou is an Assistant Professor at Bahrain Polytechnic, Bahrain.
Hemachandran Kannan is a Professor at School of Business, Woxsen University, India.