Sustainability Strategies in UK Financial Services: Integrating ESG Principles for Long-Term Growth
Abstract
This study investigated the integration of Environmental, Social, and Governance (ESG) principles within UK financial services, addressing the critical need for sustainable finance practices amid evolving regulatory landscapes and global challenges. Grounded in stakeholder theory, which emphasized considering the interests of all stakeholders, the research employed a comprehensive desktop review methodology to analyze current ESG practices, challenges, and opportunities. Findings revealed a growing trend towards ESG integration driven by regulatory pressures, stakeholder expectations, and strategic imperatives, though sector-specific challenges persisted. The study concluded that effective ESG integration enhanced financial performance and stakeholder trust, recommending that policymakers harmonize ESG reporting standards, financial institutions invest in capacity building and data management systems, and enhance collaboration and technological innovation to advance sustainable finance practices within the UK financial sector.
Keywords: Sustainability Strategies, Financial Service, ESG Principles, Growth
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