Abstract:
This study examines the structural determinants of Environmental Pillar (EP) performance in the international banking system by integrating advanced machine learning techniques with model interpretability tools. Using a dataset of banks from 24 countries between 2019 and 2023, the analysis identifies key financial, institutional, and risk-related drivers of environmental sustainability and explores their interaction patterns across different regions. The results show that EP performance is not the outcome of isolated or linear dynamics but emerges from a multidimensional balance between ethical governance, social responsibility, financial soundness, and operational efficiency. Environmental sustainability is particularly reinforced when strong governance structures and high levels of social engagement act jointly as institutional anchors. The positive contribution of bank size to EP is conditional on a substantial social orientation, while excessive profitability or risk exposure is associated with lower environmental performance.