Quality of ESG reporting in the banking sector: Evaluation criteria, information gaps, and implications for enhancing transparency

This study proposes an evaluation framework for the quality of ESG reporting in the banking sector, emphasizing materiality, quantification, consistency, data transparency, and verifiability. Based on qualitative content analysis of banks’ reports, the study identifies three major information gaps: ESG disclosures are insufficiently linked to core banking activities and risk exposures; KPI reporting often lacks baselines, time-series comparability, and methodological explanations; and independent assurance and accountability mechanisms remain limited. Accordingly, the study recommends measures to enhance transparency at the bank, regulatory, and investor levels to strengthen comparability across banks.