Previous studies suggest that increasing the level of information disclosed in the banking sector can help managers better manage the environmental impact of their portfolios. However, both the quantity and quality of information disclosed are important for stakeholders. Despite the shift from voluntary to mandatory non-financial disclosure under the EU Directive 2014/95/EU, the banking sector has received limited attentions from sustaionable accounting and finance scholars regarding non-financial disclosure. Many banks still fail to disclose sufficient environmental impact information, although environmental risks have become a central concern for banks, particularly as natural disasters increasingly affect their borrowers. However, environmental disclosure remains challenging for market participants due to the high costs of processing this information.