MEASURING THE SUSTAINABLE DEVELOPMENT OF INDUSTRIAL COMMERCIAL BANK OF CHINA – USING PRINCIPLE COMPONENT METHOD

Abstract

This study endeavors to build a conceptual framework for sustainable development in the banking sector. It tried to explain and measure the environmental, social, and economic factors of China's Industrial, commercial bank (ICBC). We have employed the Principle Component Analysis or PCA Method for measuring the impacts of sustainable development. The roger and carter model successfully created a framework than an index to measure the bank's sustainable performance. The bank CSR report has taken the essential criteria for measuring the sustainability indicators; hence the data is standardized. During the investigation, it has been found that growing green credits could cut the CO₂ emissions and other fossil fuels (combine gases index named as emission index). The implication of the roger and carter model is feasible and well-fitted for measuring the bank's sustainable development in the case of ICBC. However, there is still a problem from the environmental perspective while quantifying the inter-factor data (discussed in the paper); thus, we propose it by a single unit, known as an environmental index.