o:10008 Sustainable Banking in Serbia: The Importance of Managing ESG Risks en Abstract: Sustainable development in banking refers to conducting financial activities in a manner that supports long-term economic growth while taking into account environmental protection and social well-being. Banks play an important role in the economy because they influence how capital is allocated across different sectors. An increasing number of banks, both globally and in Serbia, are integrating ESG factors into their operations and decision-making processes related to lending, investment and risk management. The paper aims to highlight the importance of ESG risk management in the banking sector in Serbia. The focus is on regulatory developments, institutional processes and emerging challenges. The research has shown that some banks in Serbia have made significant progress in the area of ESG risk management and the integration of ESG factors into their operations, while others have only recently begun activities in this field. Banks engagement with ESG issues represents one of the leading trends in the global financial market and is becomming an imperative for institutions that aim to maintain their market position. Keywords: ESG risks; banking sector; Republic of Serbia; sustainable finance; risk management 2026-07-16T09:50:51.979Z 44 yes 46 Katarina Soleša Fakultet za ekonomiju i inženjerski menadžment u Novom Sadu 0000-0002-5790-3628 Jelena Vapa Fakultet za ekonomiju i inženjerski menadžment u Novom Sadu person 0000-0001-8062-1154 2026-06-02 application/pdf 544384 https://unilib.phaidrabg.rs/o:10008 no yes 16 70 92000002 2026-06-02 Journal of Agronomy, Technology and Engineering Management 9 3 2052 2058 2026