Environmental, Social, and Governance Awareness and its Impact on Young Customer Loyalty on Bank
DOI:
https://doi.org/10.54518/ebh.4.2.2025.676Keywords:
Customer Loyalti, ESG awareness, Sustainable Finance, Young CustomerAbstract
In the era of sustainable finance, awareness of Environmental, Social, and Governance (ESG) principles significantly influences young bank customers, particularly Millennials and Generation Z, who prioritize sustainability. This study investigates the impact of ESG awareness on the loyalty of these young customers. Data were collected from 200 respondents aged 18–35 in urban areas and analyzed using multiple linear regression to evaluate how ESG dimensions environmental protection, social responsibility, and governance practices affect customer loyalty, including satisfaction, trust, and long-term commitment. A case study of Bank Rakyat Indonesia (BRI) Regional Office Padang illustrates how the bank’s ESG initiatives strengthen relationships with young customers and align with Indonesia’s sustainable development goals. The findings reveal a positive and significant relationship between ESG awareness and young customer loyalty, with social and governance factors exerting a greater influence than environmental aspects. This research provides valuable insights for financial institutions seeking to enhance their sustainability strategies and foster long-term customer engagement amid growing demands for social and environmental accountability.
References
Abror, G., & Muharam, H. (2024). Impact of Ultramicro Holding on Financial Performance and Business Sustainability. Research Horizon, 4(4), 47-54.
Aldboush, H. H., & Ferdous, M. (2023). Building trust in fintech: an analysis of ethical and privacy considerations in the intersection of big data, AI, and customer trust. International Journal of Financial Studies, 11(3), 90.
Baskoro, F., Pancakusuma, M. B., & Raharjo, S. T. (2023). Designing And Evaluating Training Models for Human Resource Competencies in The Digital Era. Arthatama, 7(2), 49-62.
Deloitte. (2022). Millennial and Gen Z Survey. New York: Deloitte Insights.
Dick, A. S., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2), 99–113.
dos Reis Cardillo, M. A., & Basso, L. F. C. (2025). Revisiting knowledge on ESG/CSR and financial performance: A bibliometric and systematic review of moderating variables. Journal of Innovation & Knowledge, 10(1), 100648.
Eccles, R. G., & Klimenko, S. (2019). The investor revolution. Harvard Business Review, 97(3), 106-116.
Fatma, M., & Khan, I. (2023). Corporate social responsibility and brand advocacy among consumers: The mediating role of brand trust. Sustainability, 15(3), 2777.
Fauzi, T. H., Adnani, L., & Jamaludin, M. (2022). Impact of enterprise resource planning (ERP) on the quality of work of company employees: A brief review. Economic and Business Horizon, 1(1), 33-39.
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman.
Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233.
Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: aggregated evidence from more than 2000 empirical studies. Journal of sustainable finance & investment, 5(4), 210-233.
Galeone, G., Ranaldo, S., & Fusco, A. (2024). ESG and FinTech: Are they connected? Research in International Business and Finance, 69, 102225.
Koeswayo, P. S., Haryanto, H., & Handoyo, S. (2024). The impact of corporate governance, internal control and corporate reputation on employee engagement: a moderating role of leadership style. Cogent Business & Management, 11(1), 2296698.
Koh, H., Burnasheva, R., & Suh, Y. G. (2021). Perceived ESG (Environmental, Social, Governance) and Consumers’ Responses: The Mediating Role of Brand Credibility, Brand Image, and Perceived Quality. Sustainability, 14(8), 4515.
Kotler, P., Keller, K. L., Brady, M., Goodman, M., & Hansen, T. (2016). Marketing Management 3rd edn PDF eBook. Pearson Higher Ed.
Li, J., Chiu, D. K., Ho, K. K., & So, S. (2023). The Use of Social Media in Sustainable Green Lifestyle Adoption: Social Media Influencers and Value Co-Creation. Sustainability, 16(3),
Lu, C., Wu, C., Feng, L., Zhan, J., Shi, Y., & Chen, H. (2024). Does ESG Performance Enhance Corporate Green Technological Innovation? Micro Evidence from Chinese-Listed Companies. Sustainability, 17(2), 636.
Nielsen, C. (2015). The sustainability imperative: new insights on consumer expectations. Nielsen Company New York.
Oliver, R. L. (1999). Whence consumer loyalty?. Journal of marketing, 63(4_suppl1), 33-44.
Onjewu, A. K. E., Jafari-Sadeghi, V., Kock, N., Haddoud, M. Y., & Sakka, G. (2023). The catalyzing role of customer pressure on environmental initiatives and export intensity: A study of family firms. Journal of Business Research, 166, 114134.
Oprean-Stan, C., Oncioiu, I., Iuga, I. C., & Stan, S. (2020). Impact of sustainability reporting and inadequate management of ESG factors on corporate performance and sustainable growth. Sustainability, 12(20), 8536.
Peattie, K. (2010). Green consumption: Behavior and norms. Annual Review of Environment and Resources, 35, 195–228.
Sah, A. K., Hong, Y., & Huang, K. (2024). Enhancing Brand Value Through Circular Economy Service Quality: The Mediating Roles of Customer Satisfaction, Brand Image, and Customer Loyalty. Sustainability, 17(3), 1332.
Schoenmaker, D., & Schramade, W. (2019). Principles of Sustainable Finance. Oxford University Press.
Sekaran, U., & Roger, B. (2020). Research Methods for Business :A Skill. Building Approach. Asia Edition Hoboken : Wiley.
Shalhoob, H., & Hussainey, K. (2022). Environmental, Social and Governance (ESG) Disclosure and the Small and Medium Enterprises (SMEs) Sustainability Performance. Sustainability, 15(1), 200.
Sneideriene, A., & Legenzova, R. (2025). Greenwashing prevention in environmental, social, and governance (ESG) disclosures: A bibliometric analysis. Research in International Business and Finance, 74, 102720.
Suki, N. M., & Suki, N. M. (2019). Examination of peer influence as a moderator and predictor in explaining green purchase behaviour in a developing country. Journal of cleaner production, 228, 833-844.
Suki, N. M., & Suki, N. M. (2019). Young consumers’ perceptions of sustainable banking. Journal of Cleaner Production, 233, 465–476.
Theocharis, D., & Tsekouropoulos, G. (2024). Sustainable Consumption and Branding for Gen Z: How Brand Dimensions Influence Consumer Behavior and Adoption of Newly Launched Technological Products. Sustainability, 17(9), 4124.
Xu, Y., & Zhu, N. (2023). The Effect of Environmental, Social, and Governance (ESG) Performance on Corporate Financial Performance in China: Based on the Perspective of Innovation and Financial Constraints. Sustainability, 16(8), 3329.
Yen, Y., & Chen, S. (2024). The Triple Pathway to Loyalty: Understanding How Banks’ Corporate Social Responsibility Influences Customers via Moral Identity, Service Quality, and Relationship Quality. Sustainability, 17(7), 3220.
Zaporowska, Z., & Szczepański, M. (2023). The Application of Environmental, Social and Governance Standards in Operational Risk Management in SSC in Poland. Sustainability, 16(6), 2413.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
