ESG-BASED MANAGEMENT STRATEGY IN A TRANSITION-ECONOMY BANK: THE MATURITY GAP BETWEEN GOVERNANCE AND ENVIRONMENTAL PRACTICE AT ALOQABANK (UZBEKISTAN)

Abstract

Environmental, social and governance (ESG) principles have evolved from voluntary corporate social responsibility into a core dimension of management strategy, particularly in banking, where institutions allocate capital across the wider economy. Yet in transition economies ESG adoption is markedly uneven. This paper examines ESG-based management strategy in Uzbekistan’s banking sector through a single-case study of JSC Aloqabank, one of the country’s largest commercial banks. Using a structured expert assessment of five ESG-related dimensions on a ten-point scale, complemented by document analysis and a SWOT evaluation, the study finds that Aloqabank exhibits strong governance (8/10), social (8/10) and digital-infrastructure (9/10) performance but weak environmental performance (3/10) — a maturity gap of approximately five scale points. This imbalance reflects a structural pattern typical of developing-country banks: governance and digital capabilities advance while environmental finance lags. The paper argues that the binding constraint is not awareness or willingness, but the absence of institutional infrastructure — a standalone ESG strategy, green-finance instruments, ESG-integrated risk screening, and internationally aligned disclosure. A projected implementation scenario indicates that the bank’s aggregate ESG maturity index could rise by approximately 20%. Implications for bank strategy and for Uzbekistan’s green-economy agenda are discussed.