Key Drivers of Sustainability Practices in the UK Banking Sector: implications for Sustainable Development Goals

Authors

  • Ekene Ekemezie Nwafor Orizu College of Education, Nsugbe, Anambra State
  • Kaodilichukwu Augustine Echem University of Northampton

DOI:

https://doi.org/10.64420/jgmds.v2i1.161

Keywords:

Sustainability Practices, UK Banking, Development Goals

Abstract

Background: This study investigates the key drivers influencing sustainability practices in the UK banking sector amid increasing global expectations aligned with the Sustainable Development Goals (SDGs). Objective: To explore stakeholder perceptions regarding banks’ sustainability efforts. Method: A quantitative research design was employed using an online survey administered to 191 randomly selected respondents from a population of 2.5 million stakeholders, including bank executives, employees, customers, investors, regulators, and advocacy groups. Data were collected through structured questionnaires and analyzed using descriptive statistics and t-tests. Results: The findings indicate that community engagement, corporate social responsibility, credible sustainability reporting, and financial performance significantly influence stakeholder perceptions. Conversely, transparency in reporting was not widely perceived as impactful. T-test results revealed no statistically significant factors, thereby supporting the null hypothesis. Conclusion: While UK banks exhibit alignment with SDGs 8, 9, 11, 12, 13, and 16, weak governmental influence underscores the need for stronger policy frameworks and intersectoral collaboration. Contribution: The study highlights the importance of enhancing stakeholder education and integrating environmental, social, and governance (ESG) principles into core banking strategies and operations.

References

Amole, O., & Emedo, M. (2025). Integrating Environmental, Social and Governance (ESG) Principles into Financial Planning for Sustainable Corporate Growth. Asian Journal of Advanced Research and Reports, 19(1), 56-64. https://doi.org/10.9734/ajarr/2025/v19i1861

Anagnostopoulos, I. (2018). Fintech and regtech: Impact on regulators and banks. Journal of Economics and Business, 100, 7-25. https://doi.org/10.1016/j.jeconbus.2018.07.003

Calomiris, C. W., & Carlson, M. (2016). Corporate governance and risk management at unprotected banks: National banks in the 1890s. Journal of financial economics, 119(3), 512-532. https://doi.org/10.1016/j.jfineco.2016.01.025

Chen, S., Wang, K., & Liu, H. (2022). The impact of the Equator Principles on carbon financial markets: A case study based on China's green credit data. Energy Strategy Reviews, 44, 100999. https://doi.org/10.1016/j.esr.2022.100999

Cromwell, R. S., & Peprah, J. A. (2025). Banking Business Models and Sustainable Development: Challenges and Opportunities. Strategic Approaches to Banking Business and Sustainable Development Goals, 3-22. https://doi.org/10.1007/978-3-031-80744-2

Dörry, S., & Schulz, C. (2018). Green financing, interrupted. Potential directions for sustainable finance in Luxembourg. Local Environment, 23(7), 717-733. https://doi.org/10.1080/13549839.2018.1428792

Elansari, H., Alzubi, A., & Khadem, A. (2024). The Impact of United Nations Sustainable Development Goals on Customers’ Perceptions and Loyalty in the Banking Sector: A Multi-Mediation Approach. Sustainability, 16(18), 8276. https://doi.org/10.3390/su16188276

Grijalvo, M., & García-Wang, C. (2023). Sustainable business model for climate finance. Key drivers for the commercial banking sector. Journal of Business Research, 155, 113446. https://doi.org/10.1016/j.jbusres.2022.113446

Gunawan, J., Ambarita, I. O., Putri, A. N. A., & Lee, J. C. G. (2024). Greening the Bottom Line: How Do Banking Sectors Implement Technology to Support Sustainable Development Goals in Innovation?. International Journal of Entrepreneurship and Sustainability Studies, 4(1), 44. https://doi.org/10.31098/ijeass.v4i1.2316

Hart, P. F., & Rodgers, W. (2024). Competition, competitiveness, and competitive advantage in higher education institutions: a systematic literature review. Studies in Higher Education, 49(11), 2153-2177. https://doi.org/10.1080/03075079.2023.2293926

Hossain, A., Sobhani, F. A., Omar, N., Mohamad, N., & Said, J. (2019). Corporate governance, risk management and ethical investment: Evidence from banking industries. International Journal of Financial Research, 10(5), 126-137. https://doi.org/10.5430/ijfr.v10n5p126

Lauren, F. A. H. Y. (2022). Regulator reputation and stakeholder participation: A case study of the UK’s regulatory sandbox for fintech. European Journal of Risk Regulation, 13(1), 138-157. https://doi.org/10.1017/err.2021.44

Lian, Y., Gao, J., & Ye, T. (2022). How does green credit affect the financial performance of commercial banks?-evidence from China. Journal of Cleaner Production, 344, 131069. https://doi.org/10.1016/j.jclepro.2022.131069

Long, T. B., Looijen, A., & Blok, V. (2018). Critical success factors for the transition to business models for sustainability in the food and beverage industry in the Netherlands. Journal of cleaner production, 175, 82-95. https://doi.org/10.1016/j.jclepro.2017.11.067

Marzuki, M. M., Majid, W. Z. N. A., & Rosman, R. (2023). Corporate social responsibility and Islamic social finance impact on banking sustainability post-COVID-19 pandemic. Heliyon, 9(10). https://doi.org/10.1016/j.heliyon.2023.e20501

Mukhtar, S. M., & Bahormoz, A. (2022). An integrative framework for stakeholder engagement: Reconciling and integrating stakeholders’ conflicting CSR priorities in management decision-making. Journal of Decision Systems, 31(4), 407-432. https://doi.org/10.1080/12460125.2021.1950115

Park, H., & Kim, J. D. (2020). Transition towards green banking: role of financial regulators and financial institutions. Asian Journal of Sustainability and Social Responsibility, 5(1), 1-25. https://doi.org/10.1186/s41180-020-00034-3

Pucci, T., Casprini, E., Galati, A., & Zanni, L. (2020). The virtuous cycle of stakeholder engagement in developing a sustainability culture: Salcheto winery. Journal of Business Research, 119, 364-376. https://doi.org/10.1016/j.jbusres.2018.11.009

Raihan, A., Muhtasim, D. A., Farhana, S., Pavel, M. I., Faruk, O., Rahman, M., & Mahmood, A. (2022). Nexus between carbon emissions, economic growth, renewable energy use, urbanization, industrialization, technological innovation, and forest area towards achieving environmental sustainability in Bangladesh. Energy and Climate Change, 3, 100080. https://doi.org/10.1016/j.egycc.2022.100080

Schulte, J., & Knuts, S. (2022). Sustainability impact and effects analysis-A risk management tool for sustainable product development. Sustainable Production and Consumption, 30, 737-751. https://doi.org/10.1016/j.spc.2022.01.004

Seele, P. (2016). Digitally unified reporting: how XBRL-based real-time transparency helps in combining integrated sustainability reporting and performance control. Journal of Cleaner Production, 136, 65-77. https://doi.org/10.1016/j.jclepro.2016.01.102

Shaikh, I. (2022). Environmental, social, and governance (ESG) practice and firm performance: an international evidence. Journal of Business Economics and Management, 23(1), 218-237. https://doi.org/10.3846/jbem.2022.16202

Tripathy, A., Mok, L. W., & House, K. (2020). Defining climate-aligned investment: An analysis of sustainable finance taxonomy development. Tripathy, Aneil and Mok, Lionel and House, Katie, Defining Climate-Aligned Investment: An Analysis of Sustainable Finance Taxonomy Development (September 2, 2020). The Journal of Environmental Investing, 10(1). https://ssrn.com/abstract=3684926

Tsindeliani, I. A., Proshunin, M. M., Sadovskaya, T. D., Popkova, Z. G., Davydova, M. A., & Babayan, O. A. (2022). Digital transformation of the banking system in the context of sustainable development. Journal of Money Laundering Control, 25(1), 165-180. http://dx.doi.org/10.1108/JMLC-02-2021-0011

United Nations, (2015). The 17 Goals. retrieved 03/05/2025 from https://sdgs.un.org/goals

Downloads

Published

2025-05-15

How to Cite

Ekemezie, E., & Echem, K. A. . (2025). Key Drivers of Sustainability Practices in the UK Banking Sector: implications for Sustainable Development Goals. Journal of Gender and Millennium Development Studies, 2(1), 54–62. https://doi.org/10.64420/jgmds.v2i1.161

Issue

Vol. 2 No. 1 (2025): JGMDS, Volume 2, Issue 1 (2025): May-October Period

Section

Articles

License

Copyright (c) 2025 Ekene Ekemezie, Kaodilichukwu Augustine Echem

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms: (1) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal; (2) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal; (3) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.