Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/338944 
Authors: 
Year of Publication: 
2025
Citation: 
[Journal:] Journal of Business Economics [ISSN:] 1861-8928 [Volume:] 96 [Issue:] 1 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2025 [Pages:] 107-127
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
The sustainable transformation of the economy poses new challenges for banks, particularly in connection with the implementation of ESG (environmental, social and governance). While numerous studies shed light on various aspects of sustainability in the banking sector, there is a lack of detailed analysis of the costs associated with ESG implementation. This study undertakes the first comprehensive investigation of implementation and operating costs based on selected regulatory requirements in the German cooperative banking sector. Using the standard cost model, the relevant requirements were identified and the required resources quantified and qualitatively validated through a survey of six small and medium-sized cooperative banks. The results show that the initial introduction and implementation of ESG costs an average of 10,793 euros per billion euros in total assets, which corresponds to around 14,000 euros for a typical Volks- und Raiffeisenbank in Germany. The average annual ongoing personnel costs for ESG line tasks amount to 7,778 euros per billion euros in total assets.
Subjects: 
Sustainable banking
German cooperative banking sector
ESG implementation costs
Sustainability
Sustainable transformation
ESG
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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