Corporate environmental assessment by a bank lender: a social constructionist perspective

Over the last decade evidence has emerged which suggests that lenders are considering environmental impact of corporate borrowers as part of their lending decisions. Environmental consideration by lenders may considerably influence the level of financial support available for economic growth and environmemntal management. The primary aim of this research project is to examine the development and use of corporate environmental assessment techniques by members of a commercial lending bank. The research will build upon previous findings that highlight the influences of culture upon bank members perception of environmental credit risks. Specific emphasis will be placed on evaluating the role of mechanisms for the communiaction of bank policy. These will be analysed to find out how and why corporate environmental performance considerations shape the lending process. Research will be undertaken in the form of a case study facilitated by Lloyds TSB Group plc. Analysis will centre on an evaluation of the rationalities for environmental assessment displayed by bank members and their justification for the application of specific environemnatal assessment techniques. The findings are expected to be of direct practical benefit to bank lending officers and others interested in lending processes and/or corporate environmental assessment techniques.