The Role of Esg Factors in Sustainable Credit Management

This article examines the integration of Environmental, Social, and Governance (ESG) factors into sustainable credit management practices. It highlights the increasing importance of ESG considerations in the banking and financial sector, particularly in credit risk assessment and portfolio optimization. The study analyzes how ESG-compliant lending contributes to long-term financial stability, reduces default risks, and promotes sustainable economic development. Additionally, the article explores global best practices and regulatory frameworks that encourage banks to adopt ESG principles in credit decisionmaking processes.