A review of research on ESG portfolios and risk management of listed banks in the context of carbon neutrality

Abstract

Against the backdrop ofthe comprehensive promotion ofthe “dual carbon” goals and the in-depth development of green finance, the ESG (Environmental, Social, and Governance) concept has become an important guide for the operational development and risk management of commercial banks. As the core entities of China’s financial system, listed banks’ ESG investment portfolio construction and risk management level not only relate to their own sustainable development but also affect the stable operation of the entire financial market. This paper adopts literature research, inductive deduction, and comparative analysis methods to systematically sort out relevant research results on ESG, green credit, investment portfolio, and risk management of listed banks at home and abroad. It summarizes the mainstream views, consensus, and differences in existing research, analyzes the shortcomings and deficiencies of current research, and proposes future research directions in the context of carbon neutrality policies. The research aims to integrate the research context of related fields, enrich the cross-disciplinary theoretical system of green finance and investment portfolio management, and provide literature references for bank operations, investor decisions, and regulatory policy formulation.