ENVIRONMENTAL TAX INCENTIVES AND CORPORATE ESG PERFORMANCE OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA

This study investigated the influence of environmental tax incentives on corporate Environmental, Social and Governance (ESG) performance of quoted Deposit Money Banks (DMBs) in Nigeria. The research anchored on stakeholders’ theory, adopted descriptive survey design and data collected from 220 corporate representatives using a structured questionnaire. The method of data analysis employed was multiple regression analysis. The findings revealed that revealed that all the measures of environmental tax incentives (F= 41.220,  < 0.05) have positive and significant impact on the corporate ESG performance of quoted DMBs in Lagos State Metropolis, Nigeria. It was thus concluded that environmental tax incentives are critical drivers of quoted DMBs engaging in corporate ESG performance. Banks that take advantage of the tax incentives available for environmental issues sustain long-term corporate sustainability and create value for their stakeholders by engaging on corporate ESG performance. Hence, government making policies such environmental tax incentives to support the adoption of corporate ESG practices is crucial. It was therefore recommended among others that government should review the tax policy that will support the reduction of costs of green technologies, increase tax exemptions, financial incentives and government support for R&D and environmental innovation. This can encourage companies like quoted DMBs to fully adopt ESG practices.