Climate‐Related Disclosure and Bank Performance: Does Bank Type Matter?
BUSINESS STRATEGY AND THE ENVIRONMENT, sa.Early View, ss.1-28, 2026 (SSCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Basım Tarihi: 2026
- Doi Numarası: 10.1002/bse.71212
- Dergi Adı: BUSINESS STRATEGY AND THE ENVIRONMENT
- Derginin Tarandığı İndeksler: Natural Science Collection (ProQuest), Business Source Ultimate (EBSCO), Scopus, Materials Science & Engineering Collection (ProQuest), Technology Collection (ProQuest), Social Sciences Citation Index (SSCI), ABI/INFORM, Environment Index, Geobase, Greenfile, INSPEC, Psycinfo, Public Affairs Index
- Sayfa Sayıları: ss.1-28
- Bilecik Şeyh Edebali Üniversitesi Adresli: Evet
Özet
This paper investigates whether climate-related disclosure (CRD) affects the financial performance of conventional banks (CBs)and Islamic banks (IBs) differently. Using a unique hand- collected dataset on CRD for 591 banks (422 CBs and 169 IBs) from 24countries over a 4-year period, we examine how the relationship between CRD and financial performance varies across banktypes. The results reveal a contrasting effect of CRD on the financial performance of the two bank types. Specifically, CBs expe-rience a significant improvement in financial performance as the extent of their environmental and CRDs increases, whereas IBsexhibit a significantly negative relationship between CRD and financial performance. We attribute this disparity to CBs' compar-ative advantages, including greater market power, higher cost efficiency and more flexible governance structures, which enablethem to derive greater benefits from CRD practices than IBs. This study contributes to the literature on nonfinancial disclosureand bank performance by highlighting the heterogeneous effects of CRD across banking models. The findings also have impor-tant policy implications for addressing climate change and advancing sustainable finance initiatives, particularly in the contextof the Paris Agreement and COP26. More broadly, the study underscores the critical role of the banking sector in facilitating thetransition to a more sustainable economy.