ESG Strategy Impact on Client Potential of a Commercial Bank

ESG strategies are a key factor in the competitiveness of commercial banks in the context of the global transformation of the financial sector under the influence of climate change, social inequality, and increasing regulatory pressure. The purpose of the study is to analyze the impact of ESG principles on the client potential of banks, aimed at developing tools for its assessment with subsequent focus on the development of client potential. Technically, the differences between the concepts of “creditworthy” and “promising” bank clients were revealed, showing that promising clients have the potential for long-term cooperation, creating an ecosystem of interconnected financial flows around themselves, which allows focusing on their assessment from the standpoint of developing ESG strategies. The paper used the following methods: coefficient, system analysis, synthesis, grouping, graphical, calculation, and analytical and scoring assessment of clients according to ESG criteria. One of the best practical experiences in ESG use in PSB Bank PJSC is shown. The main results of the study are the development of a comprehensive method for the assessment of promising clients, combining financial indicators (liquidity, profitability) and ESG factors (environmental responsibility, social policy, corporate governance). It was found that the use of the ESG approach allows banks to increase their client base by 20– 30%, while the “green” mortgage for PSB can provide an additional annual inflow of funds and attract new clients. The practical significance of the study is the suggestion for banks of an ESG client assessment method, a “green” mortgage model with a reduced rate, and the formation of tools to encourage developers to use energy-efficient technologies. These measures will allow banks to increase income, strengthen their reputation, minimize risks, and meet the growing expectations of clients, especially among younger generations. The results confirm that ESG transformation is a strategic tool for sustainable growth of the banking sector in the long term. Authors’ contribution. V.V. Manuylenko – formulation of the objective, hypothesis, and substantiation of the research methodology; conclusions on the relationship between ESG strategies and the client potential of a commercial bank; interpretation of the results; and formulation of conclusions. M.N. Nagornaya – analysis of theoretical sources; study of general trends in the field of formation of the bank’s client potential; practice of ESG development in the bank; analysis, collection, and systematization of data on the essence of client, credit, deposit potential, client base, and features of ESG application; conducting a scoring assessment of promising clients taking into account ESG criteria; and visualization of research results.