In the financial industry, balance and sustainability are no longer just ideals—they are becoming essential pillars for long-term success. From promoting gender diversity in leadership roles to integrating responsible investing and green financing, financial institutions are evolving to meet both ethical standards and profitability goals.
To explore these themes in depth, we are joined by Professor Marco Savioli, a researcher at the University of Salento, Italy, a partner institution of VILNIUS TECH through the ATHENA European university alliance.
Professor Savioli was invited by the VILNIUS TECH Sustainability Hub to deliver a series of lectures. He addressed both Master's and Bachelor's students in the Sustainability Management and Financial Engineering programs, sharing his expertise in the fields of sustainability and finance. Professor Savioli provided valuable insights and practical knowledge from his research and professional experience, making him a well-suited expert for this discussion on gender balance and sustainability in banking.
Gender balance in banking leadership
Let's start by discussing gender balance in leadership, a topic Professor Savioli has studied extensively. According to him, diversity at the board level brings in varied perspectives, ensuring more comprehensive and effective decision-making.
“Diversity in leadership is crucial, especially in the banking sector, where decisions impact multiple industries. When you have a homogenous group, the decision-making tends to be narrow. Including individuals with diverse backgrounds and genders fosters broader perspectives and better decisions,” he explains.
Professor Savioli highlights that banks with female CEOs or leaders often show improved performance, noting that female decision-makers tend to bring a different approach to leadership. “There’s a need to create environments where both men and women’s perspectives are equally valued. This enhances the overall effectiveness of leadership,” he adds.
Integrating gender balance into sustainability strategies
When asked how banks can integrate gender balance into their broader sustainability strategies, Professor Savioli suggests that this can be approached from both internal and external perspectives.
“Internally, banks can promote gender diversity by implementing quotas or creating leadership development programs for women. Externally, banks as organisations have the power to influence gender balance by prioritizing investments in companies that actively promote gender equality,” he says.
Prof. Savioli also points out the importance of addressing challenges like motherhood, which often affect women’s career progression. “Support systems like nurseries and flexible working hours are crucial in enabling women to continue their careers without having to choose between work and family,” he emphasizes.
The impact of gender balance on financial performance
Prof. Savioli firmly believes that gender balance positively influences the long-term financial performance and sustainability of banks. His ongoing research delves into the relationship between compensation strategies and sustainability objectives.
“Linking compensation to long-term goals, such as sustainability and gender balance, encourages leaders to make forward-thinking decisions. Diverse leadership teams are more likely to focus on these long-term objectives, which strengthens both financial performance and sustainability,” he explains.
Sustainability initiatives in banking: Green financing and responsible investments
Professor Savioli highlights the role of regulations, such as the Sustainable Finance Disclosure Regulation (SFDR), in shaping banking strategies. This regulation mandates environmental, social, and governance (ESG) disclosures for asset managers, promoting transparency and accountability in responsible investments.
However, he also warns about potential pitfalls. “We need to be cautious because, sometimes, green financing can be misleading. For example, some green investments still support industries like armaments, which contradict the principles of sustainability. It’s important to scrutinize these initiatives carefully to ensure they align with their intended goals,” he cautions.
The sustainability strategy at the University of Salento
Beyond his work in banking, Professor Savioli is actively involved in the sustainability strategy at the University of Salento. The university is currently developing new sustainable infrastructure, supported by European funding.
“We’re using this opportunity to rethink the conversion of our buildings in line with sustainability goals, paying close attention to materials, energy efficiency, and accessibility for people with disabilities. It’s an important step toward aligning our physical spaces with our sustainability values,” M. Savioli shares.
Collaborations within the ATHENA alliance
The University of Salento is also an active member of the ATHENA European university alliance. Professor Savioli highlights recent activities focused on gender equality and sustainability within the alliance.
“Within ATHENA we have a special task force, which is leading sustainability on campus action. University of Vigo, leads efforts on gender equality, and Maria Curie-Skłodowska University, which focuses on well-being. At the University of Salento, is leading efforts on environmental sustainability, the same area where VILNIUS tech has a broad expertise” he explains. Task force within the alliance holds regular meetings, with the next major gathering in October 2024 in Lublin, Poland, where further action directions will be discussed.
Personal motivation: Sustainability and gender balance
When asked about his personal motivation for focusing on sustainability and gender balance, Professor Savioli’s response is heartfelt.
“I care deeply about the future. If we want the human experience to continue in a positive direction, we must focus on sustainability. It’s about empathy – caring for the planet and future generations. Gender balance is equally important to me. I’ve always valued diversity, and I believe it enriches both personal and professional growth,” he reflects.
Professor Savioli concludes by emphasizing the natural desire to strive for balance in all aspects of life. “I believe it should be natural for all human beings to seek balance and sustainability. It’s what will ensure a better future for everyone.”
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