Environmental, social, and corporate governance (ESG) and financial performance among local lending agencies in Davao City

Abstract

In the global market, companies vie for competitiveness through socially responsible practices. The purpose of this study was to determine the relationship between environmental, social, and corporate governance (ESG), and financial performance among lending agencies. The study used a quantitative research method, with an adapted and modified questionnaire. Based on the data gathered, on the level of environmental, social, and corporate governance (ESG) among local lending agencies in Davao City, government issues have the highest mean, while on the level of financial performance among local lending agencies in Davao City, solvency has the highest mean among other indicators. Furthermore, there was a significant relationship between the level of environmental, social, and corporate governance (ESG), and financial performance among local lending agencies in Davao City which led to the rejection of the hypothesis. Ultimately, the researchers recommend the Department of Finance to fortify regulatory frameworks, encouraging local lending agencies to adopt robust environmental, social, and corporate governance (ESG) practices. They also recommend that the finance department among local lending agencies to proactively embrace and implement ESG principles as part of their operational strategies, and to future researchers that they may explore specific ESG indicators and their nuanced impact on diverse financial dimensions.