The Sustainability of the Factoring Chain in Europe in the Light of the Integration of ESG Factors

Arnone, Massimo and Leogrande, Angelo (2024): The Sustainability of the Factoring Chain in Europe in the Light of the Integration of ESG Factors.

Abstract

The competitiveness of financed intermediaries cannot be based exclusively on financial sustainability, i.e. the ability to create profit, but it is also necessary to acquire a transversal vision of sustainability focused on the three ESG dimensions. The paper intends to propose a reflection on the main impacts of the integration of ESG factors on business decisionmaking and operational processes in the financial sector. In this context, we try to understand what role FinTech can play in favor of greater sustainability. Furthermore, through an empirical analysis, some determinants relating to social, environmental, and governance issues are identified which influence the volume of financial resources moved in the factoring market at a European level. Machine learning models are also proposed to estimate the volume

• Item Type: MPRA Paper
• Language: English
• Keywords: Sustainability, Factoring, ESG, FinTech, Machine Learning, Clusterization
• Subjects: G - Financial Economics > G0 - General > G00 - General; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; G - Financial Economics > G2 - Financial Institutions and Services > G22 - Insurance ; Insurance Companies ; Actuarial Studies

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