Optimizing the link between ESG and profitability in banks: the role of the One Health perspective

Abstract Although numerous studies have examined the impact of ESG practices on bank profitability, the results remain inconclusive, underscoring the importance of analyzing ESG components separately. This study examines the impact of ESG performance—in each of its individual dimensions—on the profitability of 192 European listed banks over the period 2009–2019, a critical decade following the 2008 global financial crisis. Via a panel regression model, the findings suggest that environmental practices deliver more immediate benefits. While governance practices are vital for ensuring stability, they do not appear to be sufficient to drive short-term variations in profitability. Moreover, social practices are negatively related to profitability. To address this finding, this study adopts the One Health approach, fostering the need for policy-makers and bank managers to integrate this perspective into bank’s approach to sustainability in a more holistic and forward-thinking vision of social responsibility via the exploitation of specialized expertise.