Exploring the trade-offs between environmentally oriented policies and financial performance in U.S. banks: non-linear and heterogeneous effects

Abstract This study aims to examine the relationship between bank performance and environmental performance—measured by the Environmental Pillar score—while accounting for shifts in bank performance profiles. The study focuses on the top institutions with high scores on the Environmental Pillar of ESG ratings, questioning whether their environmental performance increases financial performance. This research examines the link between environmental performance and bank profitability, proxied by re