Corporate environmental performance and the use of financial institution credit in the low carbon economy context

Corporate environmental performance and financial institution

Abstract

As intermediaries of resources between different economic agents, financial institutions play an important role in directing capital to projects and activities that contribute to corporate sustainability. Banks have a high power of induction, that is, they can encourage good practices both in their own internal environment, as a company, and externally, as a financing agent, promoting improvements in the environmental performance of their customers, with a positive impact on society. In this context, the objective of this article is to propose action strategies for the financial institution to act as a more effective instrument in the transition process of the production chain to the low-carbon economy model, improving its economic and environmental performance. The research methodology is based on a case study about a relevant financial institution in the economic development of agribusiness, commerce, and industry in the municipality of Maringá, northwest region of the State of Paraná. The research focused on business clients of a financial institution. The main results were the proposition of business strategies for the financial institution, such as the elaboration of a corporate sustainability questionnaire to extract information from customers and the establishment of criteria to rank customers according to socio-environmental responsibility practices.