Managing Sustainability in Banking Business Activity

The chapter addresses ESG sustainability in the banking sector by questioning its role and limits within a framework characterised by structurally conflicting interests. Rather than treating sustainability as a purely strategic or voluntary choice, the analysis explores how ESG requirements interact with the traditional objectives of banking activity and with the regulatory logic of prudential supervision. From a multi-stakeholder corporate governance perspective, the contribution investigates whether sound and prudent management can be reinterpreted as a “sustainable” organizational rule imposed on banking processes. Particular attention is devoted to the tension between sustainability goals and risk management, focusing on the potential distortive effects of an excessive ESG-driven approach. In this context, the notion of the “green swan” is examined as a governance challenge capable of affecting the stability and organization of banking activity. The chapter ultimately questions whether ESG sustainability enhances or reshapes the foundational principles of banking governance.