Effect of ESG Trends on Share Prices in Banking Sector

ESG stands for Environment, Society, and Governance as three crucial criteria considered by socially conscious investors. Economic entities have to adapt to the current global trends in sustainable development thatminimize environmental damage. Banks introduce ESG trends to increase the investment a...

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Main Authors: Novikova Polina, Brazhnikova Valeriya, Mishin Andrey
Format: Article
Language:English
Published: Kemerovo State University 2025-06-01
Series:Вестник Кемеровского государственного университета. Серия: политические, социологические и экономические науки
Subjects:
Online Access:http://doi.org/10.21603/2500-3372-2025-10-2-350-356
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author Novikova Polina
Brazhnikova Valeriya
Mishin Andrey
author_facet Novikova Polina
Brazhnikova Valeriya
Mishin Andrey
author_sort Novikova Polina
collection DOAJ
description ESG stands for Environment, Society, and Governance as three crucial criteria considered by socially conscious investors. Economic entities have to adapt to the current global trends in sustainable development thatminimize environmental damage. Banks introduce ESG trends to increase the investment attractiveness of their shares. Before making important decisions, investors take into account the ESG policy of the bank and its sustainable development strategy. The authors studied the effect of ESG policy on the share prices of Russian banks, depending on the fluctuations in the share price of the Moscow Stock Exchange. By reviewing the theory of ESG transformation in modern economy, they identified the correlations between the new ESG policy and the share prices for three largest Russian banks, i.e., SberBank, VTB Bank, and Gazprombank. The logical, structural, and correlation analyses made it possible to determine the expediency of introducing ESG trends in the domestic banking sector. The ESG trends introduced by the three banks appeared to exercise no effect on the domestic market value of their shares. The sustainable development policy demonstrated negligible impact on the value of securities of credit institutions on the Russian stock market. However, the ESG paradigm offerssome economic benefits to organizations and society.
format Article
id doaj-art-c7c8b8a0ffef4607b042c77ee2882763
institution Kabale University
issn 2500-3372
2542-1190
language English
publishDate 2025-06-01
publisher Kemerovo State University
record_format Article
series Вестник Кемеровского государственного университета. Серия: политические, социологические и экономические науки
spelling doaj-art-c7c8b8a0ffef4607b042c77ee28827632025-08-20T03:30:49ZengKemerovo State UniversityВестник Кемеровского государственного университета. Серия: политические, социологические и экономические науки2500-33722542-11902025-06-0110235035610.21603/2500-3372-2025-10-2-350-356Effect of ESG Trends on Share Prices in Banking SectorNovikova Polina0Brazhnikova Valeriya1Mishin Andrey2Vladimir State University Named After Alexander and Nikolay StoletovVladimir State University Named After Alexander and Nikolay StoletovVladimir State University Named After Alexander and Nikolay StoletovESG stands for Environment, Society, and Governance as three crucial criteria considered by socially conscious investors. Economic entities have to adapt to the current global trends in sustainable development thatminimize environmental damage. Banks introduce ESG trends to increase the investment attractiveness of their shares. Before making important decisions, investors take into account the ESG policy of the bank and its sustainable development strategy. The authors studied the effect of ESG policy on the share prices of Russian banks, depending on the fluctuations in the share price of the Moscow Stock Exchange. By reviewing the theory of ESG transformation in modern economy, they identified the correlations between the new ESG policy and the share prices for three largest Russian banks, i.e., SberBank, VTB Bank, and Gazprombank. The logical, structural, and correlation analyses made it possible to determine the expediency of introducing ESG trends in the domestic banking sector. The ESG trends introduced by the three banks appeared to exercise no effect on the domestic market value of their shares. The sustainable development policy demonstrated negligible impact on the value of securities of credit institutions on the Russian stock market. However, the ESG paradigm offerssome economic benefits to organizations and society.http://doi.org/10.21603/2500-3372-2025-10-2-350-356ESG sustainable development social responsibility environmental responsibility managerial responsibility banking sector stocks
spellingShingle Novikova Polina
Brazhnikova Valeriya
Mishin Andrey
Effect of ESG Trends on Share Prices in Banking Sector
Вестник Кемеровского государственного университета. Серия: политические, социологические и экономические науки
ESG
sustainable development
social responsibility
environmental responsibility
managerial responsibility
banking sector
stocks
title Effect of ESG Trends on Share Prices in Banking Sector
title_full Effect of ESG Trends on Share Prices in Banking Sector
title_fullStr Effect of ESG Trends on Share Prices in Banking Sector
title_full_unstemmed Effect of ESG Trends on Share Prices in Banking Sector
title_short Effect of ESG Trends on Share Prices in Banking Sector
title_sort effect of esg trends on share prices in banking sector
topic ESG
sustainable development
social responsibility
environmental responsibility
managerial responsibility
banking sector
stocks
url http://doi.org/10.21603/2500-3372-2025-10-2-350-356
work_keys_str_mv AT novikovapolina effectofesgtrendsonsharepricesinbankingsector
AT brazhnikovavaleriya effectofesgtrendsonsharepricesinbankingsector
AT mishinandrey effectofesgtrendsonsharepricesinbankingsector