A Sequential Sustainability Transformation Model for Financial Institutions
37 Pages Posted: 14 Apr 2021 Last revised: 23 Aug 2021
Date Written: March 29, 2021
This study configures a sustainability transformation model for financial institutions considering the EU and German sustainability perspectives. The study zooms in on sustainability transformation issues deploying Stouten, Rousseau, & Cremer’s Model of ten key evidence-based steps in managing planned organizational change as an anchor in developing a sequential sustainability transformation model (STM) and classifying transformation steps in terms of E, S, and G factors. In building step-by-step an avenue for financial institutions towards sustainability, it becomes clearer that the governance factor plays the most significant and dominant role among ESG factors. The model (STM) itself, organizational change steps, transformation steps, and the findings address key takeaways not only for financial institutions but also non-financial organizations planning a full-fledged sustainability transformation and striving for a quantum leap in their markets. This study also connects the relevant literature and industry practices on sustainability transformation and addresses future research topics in the same avenue.
Keywords: ESG, Environmental, Social and Governance Factors, Sustainability, Sustainability Transformation, Sustainability Transition, Financial Institutions, Sustainable Banking, Sustainable Business Model, Sustainable Finance, Planned Organizational Change, the EU, Germany
JEL Classification: G20, G30, O52, Q01, Q54, Q56, Q58
Suggested Citation: Suggested Citation