From banking-sector benchmarks to non-financial firms: ESG risk governance and perceived organizational outcomes in Slovenia and Croatia

Purpose This study examines whether environmental risk governance and integration, social risk governance and integration, and ESG risk governance and oversight are associated with perceived ESG-related organizational outcomes in non-financial firms. It also explores the banking sector as a benchmark for potentially transferable ESG risk-governance practices. Design/methodology/approach A sequential research design combines document-based banking benchmarking with a survey of 114 medium-sized and large non-financial firms in Slovenia and Croatia. The proposed relationships were assessed using partial least squares structural equation modeling (PLS-SEM), supported by measurement-model diagnostics and robustness analyses. Findings All three ESG risk-governance dimensions are positively associated with perceived ESG-related organizational outcomes and jointly explain 58.6% of their variance. ESG risk governance and oversight demonstrates the strongest association, followed by environmental risk governance and integration and social risk governance and integration. Research limitations/implications The cross-sectional, single-respondent design limits causal inference and may be affected by common method bias. The outcome construct reflects managerial perceptions rather than externally verified ESG ratings. Future research should employ longitudinal, multi-source data and objective outcome measures. Practical implications Non-financial firms should prioritize board-level oversight, clearly assigned ESG responsibilities, formal integration of ESG risks into enterprise risk management, and systematic monitoring and reporting. Banking-sector practices may serve as adaptable reference points rather than directly replicable templates. Originality/value The study distinguishes three dimensions of ESG risk governance and links them to perceived organizational outcomes in a Central and Eastern European context. It also explains how governance practices developed in a highly regulated sector may be selectively adapted by non-financial firms.