Sustainable banking and ESG integration: A systematic review of green finance practices in global banking systems
DOI:
https://doi.org/10.38140/ijms-2025.vol2.1.07Keywords:
Global banking system, green financing, sustainable banking, sustainability, corporate social responsibilityAbstract
This study critically examines the historical evolution, scholarly development, and empirical integration of Environmental, Social, and Governance (ESG) principles within global banking practices over 92 years (1933–2025), with a specific focus on advancing sustainable banking practices in emerging markets. The study explicitly analyses ESG practices in the banking sectors of emerging markets. A systematic review methodology and analysis of 1,104 publications guided the research in documenting the evolution of economic stabilisation models into structured ESG-based financial systems. The study highlights a significant shift in 2016, which led to the emergence of rapidly growing publications alongside the introduction of ESG regulations, such as the SFDR and green credit requirements in the EU and China, as well as new developments in digital financial practices for ESG implementation. Despite this progress, the study identifies notable geographic and methodological gaps, particularly the underrepresentation of Africa, Latin America, and certain parts of Southeast Asia, as well as the scarcity of studies employing causal inference methods. Recommendations include fostering multi-country, longitudinal research, prioritising digital ESG innovations in underserved markets, and designing actionable, context-specific ESG frameworks to support equitable and scalable financial sustainability globally.
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