INTEGRATING ESG FACTORS INTO BANKING MANAGEMENT STRATEGIES

The specifics of modern banking business in Ukraine necessitate the incorporation of approaches to the consideration of environmental, social and governance risks into the bank management strategy, which is aimed at strengthening the overall level of financial stability of the banking system of Ukraine. The paper considers the importance and prospects of integrating ESG factors into the banking management strategy. An important advantage of the considered components is the creation of competitive advantages for banks. This allows them not only to meet regulatory requirements, withstand external risks, retain customers, expand their market presence, increase the level of social responsibility of the banking business, form partnerships with international financial institutions and organizations and the goals set by, inter alia, the Paris Climate Agreement and the UN Sustainable Development Goals. Integration of ESG factors helps to increase customer confidence, attract international investment, and ensure compliance with global requirements and long-term development.