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Environmental Considerations in Corporate Lending Business of Montenegrin Commercial Banks

Delibasic, Ratka LU (2008) IMEN41 20081
The International Institute for Industrial Environmental Economics
Abstract
Commercial banks can play an important role in environmental issues. Having a role of an
intermediary in an economy, because of their importance for the business sector, commercial
banks can influence and contribute to the healthy environment significantly. Still, the banking
sector is slowly responding to environmental challenges in comparison to other sectors: banks’
direct impacts on the environment arising from their internal processes is relatively low.
However, the banking sector’s indirect impacts on the environment (i.e. environmental
impacts of their clients’ operations, can be significant. This fact is not adequately recognized
by the commercial banks and even though banks are exposed to risks connected to their
clients’... (More)
Commercial banks can play an important role in environmental issues. Having a role of an
intermediary in an economy, because of their importance for the business sector, commercial
banks can influence and contribute to the healthy environment significantly. Still, the banking
sector is slowly responding to environmental challenges in comparison to other sectors: banks’
direct impacts on the environment arising from their internal processes is relatively low.
However, the banking sector’s indirect impacts on the environment (i.e. environmental
impacts of their clients’ operations, can be significant. This fact is not adequately recognized
by the commercial banks and even though banks are exposed to risks connected to their
clients’ environmental performance, they are rather slow in evaluating these risks.
However, among banks there are front-runners in incorporating environmental considerations
in business practices. Internationally, there are many voluntary initiatives aiming at involving
banks in taking a more active role in environmental issues, such as the United Nations
Environmental Programme Finance Initiative (UNEP FI), the Equator Principles (EP), the
European Principles for the Environment (EPE), and so on. A bank that is particularly active
in evaluating environmental consequences of its operations is European Bank for
Reconstruction and Development (EBRD). EBRD operations cover different investments
and include project financing for banks, industries and businesses. EBRD has adopted an
environmental policy and a set of procedures necessary for assessment of environmental
issues, risks and opportunities in connection with its operations.
In this thesis, the author explores Montenegrin commercial banks’ corporate lending practices
and their environmental practices. EBRD is chosen as a case study because of its
environmental mandate. The parallel with the EBRD practices serves as a basis for making
recommendations for changes in current corporate lending process. The aim is to raise
awareness of decision-making authorities in Montenegrin commercial banks on the necessity
to take into account environmental issues in the business practices. (Less)
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author
Delibasic, Ratka LU
supervisor
organization
course
IMEN41 20081
year
type
H2 - Master's Degree (Two Years)
subject
keywords
CSR, Banking, Environmental Consideration
language
English
id
1481084
date added to LUP
2009-09-29 12:59:59
date last changed
2009-09-29 12:59:59
@misc{1481084,
  abstract     = {Commercial banks can play an important role in environmental issues. Having a role of an
intermediary in an economy, because of their importance for the business sector, commercial
banks can influence and contribute to the healthy environment significantly. Still, the banking
sector is slowly responding to environmental challenges in comparison to other sectors: banks’
direct impacts on the environment arising from their internal processes is relatively low.
However, the banking sector’s indirect impacts on the environment (i.e. environmental
impacts of their clients’ operations, can be significant. This fact is not adequately recognized
by the commercial banks and even though banks are exposed to risks connected to their
clients’ environmental performance, they are rather slow in evaluating these risks.
However, among banks there are front-runners in incorporating environmental considerations
in business practices. Internationally, there are many voluntary initiatives aiming at involving
banks in taking a more active role in environmental issues, such as the United Nations
Environmental Programme Finance Initiative (UNEP FI), the Equator Principles (EP), the
European Principles for the Environment (EPE), and so on. A bank that is particularly active
in evaluating environmental consequences of its operations is European Bank for
Reconstruction and Development (EBRD). EBRD operations cover different investments
and include project financing for banks, industries and businesses. EBRD has adopted an
environmental policy and a set of procedures necessary for assessment of environmental
issues, risks and opportunities in connection with its operations.
In this thesis, the author explores Montenegrin commercial banks’ corporate lending practices
and their environmental practices. EBRD is chosen as a case study because of its
environmental mandate. The parallel with the EBRD practices serves as a basis for making
recommendations for changes in current corporate lending process. The aim is to raise
awareness of decision-making authorities in Montenegrin commercial banks on the necessity
to take into account environmental issues in the business practices.},
  author       = {Delibasic, Ratka},
  keyword      = {CSR,Banking,Environmental Consideration},
  language     = {eng},
  note         = {Student Paper},
  title        = {Environmental Considerations in Corporate Lending Business of Montenegrin Commercial Banks},
  year         = {2008},
}