The present study uses data from 1385 banks in 89 countries from 2009 to 2020 to analyze whether the banks’ environmental, social, and governance (ESG) activities around the world affect their diversification. We use a two-step system dynamic generalized method of moments technique and find that the relationship between ESG activity and bank diversification is nonlinear. Environmental and social factors negatively impact bank diversification, whereas governance has a positive impact. Bank diversification is affected by ESG overall and individual ESG dimensions more in developed countries. In high-income countries, banks generate more scope for diversification through environmental disclosures. The social activities of the executive management and the board of directors in high-income countries are intended more to satisfy their own needs than those of their banks. Governance disclosure increases income and asset diversification more for banks in high- and upper-middle-income countries. Capitalization, management quality, and liquidity are the channels through which ESG affects bank diversification. We argue that policy makers and regulators need to design and implement tailor-made frameworks and incentivize banks to embrace sustainable finance best practices. The adoption of these practices and the financing of socially responsible projects would drive interest by various stakeholders and thereby attract higher investor interest and bank valuation.

本研究使用2009年至2020年89个国家1385家银行的数据来分析全球银行的环境、社会和治理（ESG）活动是否影响其多元化。我们使用矩量技术的两步系统动态广义方法，发现 ESG 活动与银行多元化之间的关系是非线性的。环境和社会因素对银行多元化产生负面影响，而治理则产生积极影响。在发达国家，银行多元化受整体 ESG 和个别 ESG 维度的影响更大。在高收入国家，银行通过环境信息披露创造了更大的多元化空间。高收入国家执行管理层和董事会的社会活动更多的是为了满足自身的需求，而不是满足银行的需求。对于高收入和中高收入国家的银行来说，治理披露可以更多地增加收入和资产多元化。资本化、管理质量和流动性是ESG影响银行多元化的渠道。我们认为，政策制定者和监管机构需要设计和实施量身定制的框架，并激励银行拥抱可持续发展财务最佳实践。这些做法的采用以及对社会责任项目的融资将引起各利益相关者的兴趣，从而吸引更高的投资者兴趣和银行估值。