Unraveling the drivers of divergent ESG practices: a comparative study of US and EU banks

Abstract

This thesis explores divergent ESG strategies in U.S. and EU banks, analysing motivations and pressures that shape sustainable banking. It highlights contrasting approaches: market-driven in the U.S. and regulatory-driven in the EU. Internal and external factors, such as regulatory demands and stakeholder expectations, influence these strategies. The study uses a dual-frame work method to categorize ESG drivers and compares them through climate reports and indus try publications. Findings indicate that EU banks are influenced by strict regulations and sus tainability values, achieving comprehensive ESG goals, whereas U.S. banks show inconsistent ESG integration due to market and political factors.