Abstract
Environmental, Social and Governance (ESG) criteria have become central to how banks finance economic activity, manage risk and respond to intensifying regulatory and stakeholder expectations. Yet the way in which ESG becomes institutionalized inside individual banks, and particularly within the under-examined Greek banking sector, remains poorly understood. This study provides a qualitative examination of ESG institutionalization within a major Greek bank, Alpha Bank, addressing three questions: what drives ESG adoption, how ESG is embedded across banking operations, and how ESG practices are institutionalized in day-to-day activity. Adopting an interpretivist philosophy and a single-case design, the study draws on six semi-structured interviews with Alpha Bank executives spanning strategy, risk, controlling and compliance functions. Data were analysed using reflexive thematic analysis, which yielded three themes: ESG criteria adoption factors, the institutionalization of ESG in banking operations, and the institutionalization of ESG practices. The findings show that adoption is propelled by a confluence of regulatory pressure, investor expectations, an internalized sense of social responsibility and market competitiveness, while institutionalization proceeds through governance reform, the creation of dedicated ESG risk functions, transparent reporting, workforce engagement and strategic integration. Persistent obstacles such as data complexity, measurement difficulty, regulatory burden and cost coexist with clear opportunities in risk management, investor attraction, reputation and sustainable growth. The study contributes a granular, context-specific account of ESG institutionalization in Greek banking and offers practical recommendations for the bank, the sector and policymakers.
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