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Examining the Extent of ESG Practices of Nigerian Money-Deposit Banking Sector In S&P Global Rating

Okechukwu Cajetan ONWULIRI PhD, Jerry Chukwuebuka ORAJEKWE, Emmanuel Obiora NWAKEZE, Ijeoma Chineme OKORIE

Abstract

The alienation of banks from ESG practices requirement in many quarters has made the study of ESG practices as relate to banking sector an interesting one. This serves as the backdrop for the aim of this study - to examine the extent of ESG practices of money-deposit banks in Nigeria featured in S&P Global. Conceptual, empirical and theoretical reviews/framework were provided to support the study. Quantitative and descriptive designs employed ensured that ESG quantitative data/scores for Nigerian Money-deposit banks in S&P Global’s ESG scores (used as the dependent variables), and its respective ESC industry average (used as the independent), were retrieved. These data were analyzed using Independent Sample T-test in SPSS statistics (ver. 25) so to ascertain if a statistically significant difference in mean exist between the ESG breakdown scores of the sampled banks and their industry average. From the outcome, it was revealed that no statistically significant difference in mean exist between the ESG breakdown scores of selected banks (Zenith bank plc and UBA plc) and their industry-averages. That is, both banks fared impressively in recent times, with respect of ESG sustainable practices when compared to the ESG industry-averages. However, with great deficit in ESG overall score of the aforementioned banks, when compared to their counterparts in advanced countries of the world, indicates that there are areas of improvement in their ESG sustainable practices. Sequel to this, it was recommended that greater utilization of alternative and cleaner energy-sources and technologies by Nigerian money- deposit banks to consolidate on their green banking practices (GBP) particularly in reducing scope 1 & 2 emissions. More also, a sector-wide ESG-related regulations and policies should be developed and enforced in Nigeria to promote the standardization of ESG practices and regulatory-driven GBP.

Keywords

ESG PracticesSustainabilityS&P GlobalE of ESGS of ESGG of ESGMoney

References

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