Environmental, social, and governance strategy implementation and operational efficiency in the banking system

The COVID-19 pandemic has created profound economic disruptions, significantly impacting businesses and banking systems worldwide, including Vietnam. This crisis has highlighted the need for sustainable development strategies. Michael et al. (2023) indicated that banks incorporating environmental, social, and governance (ESG) criteria gain increased investor confidence, suggesting the financial viability of ESG implementation. However, adopting ESG practices needs to be more consistent, raising questions about the factors influencing ESG implementation in Vietnamese banks and its effect on performance. This study analyses the impact of leadership characteristics, stakeholder pressures, and Big Data technology on ESG implementation in the Vietnamese banking sector. Using a quantitative approach, data was collected from various banks and analysed through partial least squares structural equation modelling (PLS-SEM) to establish causal relationships between the factors and ESG adoption. The findings reveal that leadership traits — such as strategic vision, commitment, and ESG awareness — are critical drivers of ESG policies. Stakeholder groups, including regulators, customers, and shareholders, exert substantial influence, while Big Data technology demonstrates transformative potential in facilitating ESG practices. The study concludes that ESG adoption reduces costs, improves risk management, and offers a competitive edge, positioning it as both a financial necessity and a strategic advantage for the Vietnamese banking system.