Information Disclosure on the Integration of SDGs into Banking Management: The Mercosur Countries Case

This study addresses the lack of studies about the banking sector's commitment to the Sustainable Development Goals (SDGs) in the Latin American region. It focuses on banks that operate in the Mercosur economic community composed of Argentina, Brazil, Paraguay, and Uruguay. The chapter's aims are twofold. Firstly, to analyse the level of detailed information that Mercosur banks disclose regarding their sustainability practices aligned to SDGs. Secondly, to analyse organizational factors that characterize the level of detailed SDG disclosure achieved by such entities. A content analysis on reports containing SDG information and a multivariate analysis are performed. Data is collected from an initial sample of 269 banks, of which 38 entities report SDGs information. Findings show that reporting on the actions taken in favor of the SDGs is very scarce. While there is convergent behaviour among the four countries, banks that operate in Argentina and Brazil seem more engaged with the SDGs than those from Paraguay and Uruguay. Indeed, Mercosur banks mainly inform stakeholders about their contribution to economic growth (SDG 8). Regarding social engagement, the transparency of Mercosur banks’ concern about issues related to gender equality (SDG 5) is highlighted. Despite banks playing a significant role in encouraging environmentally responsible behavior amongst their clients, their accountability for organizational practices, operations and products that protect the planet is very low. Moreover, the type of ownership and listing status are factors that influence banks’ detailed dissemination of their commitment to the 2030 Agenda.