The Impact of Green Intelligence to ESG Scores in the ASEAN Banking Sector (2020-2024)

The use of Artificial Intelligence (AI) is increasing in ESG reporting as well as decision-making, yet the role of AI-driven textual analysis in improving ESG performance remains underexplored. This study analyzes the effect of Green Intelligence disclosure on ESG performance in ASEAN banking firms during 2020–2024 and investigates the moderating role of financial stability measured by the Zmijewski Z-Score. Green Intelligence is measured using textual analysis of AI- and sustainability-related disclosures in annual reports. Using panel data regression on 248 firm-year observations from the LSEG Refinitiv database, the results conclude that Green Intelligence disclosure is positively associated with ESG performance. The interaction between Green Intelligence disclosure and financial stability is also significant, indicating that firms with higher financial distress risk derive greater ESG benefits from Green Intelligence. Robustness tests confirm the positive relationship, with stronger effects among less profitable banks. These findings support Stakeholder Theory and the Resource-Based View (RBV), suggesting that disclosure of AI-enabled sustainability initiatives is associated with stronger ESG performance.