EMBRACING SUSTAINABILITY: THE ROLE OF GREEN BANKING IN FOSTERING ENVIRONMENTAL STEWARDSHIP

Abstract

Green banking has emerged as a pivotal strategy in the financial sector to address pressing environmental challenges while fostering sustainable development. This abstract delves into the concept of green banking, exploring its significance, principles, and impact on both financial institutions and the broader ecosystem. Green banking encompasses a range of practices aimed at integrating environmental considerations into banking operations, investment decisions, and customer relations. Key principles include promoting renewable energy financing, encouraging energy efficiency initiatives, supporting eco-friendly projects, and incorporating environmental risk management strategies. Financial institutions engaging in green banking not only contribute to mitigating climate change but also enhance their resilience to environmental risks. By incorporating environmental criteria into lending and investment decisions, banks can spur innovation in sustainable technologies and industries, facilitating the transition to a low-carbon economy. Moreover, green banking aligns with evolving consumer preferences and regulatory frameworks, fostering trust and loyalty among environmentally conscious customers. Through green products and services such as green loans, savings accounts, and investment portfolios, banks can empower individuals and businesses to make environmentally responsible choices. Furthermore, green banking initiatives promote transparency and accountability, as financial institutions disclose their environmental performance and impact. This transparency not only strengthens stakeholder trust but also facilitates the mobilization of green capital from investors seeking sustainable investment opportunities. In conclusion, green banking represents a transformative approach towards achieving environmental sustainability while fostering economic prosperity. By integrating environmental considerations into their core operations, financial institutions can play a pivotal role in advancing the global transition to a greener, more sustainable future. Further, the study covered the three major districts of Punjab i.e. Amritsar, Jalandhar and Ludhiana. A total of 197 questionnaires were administered to the bank employees developed on 5 point likert scale and out of 197 questionnaires, 174 were found complete and useful for further analysis. Exploratory factor analysis technique has been used to extract the factors and data analysis. In conclusion, by embracing green banking principles and implementing proactive initiatives, financial institutions can play a pivotal role in driving the transition to a more sustainable and resilient economy, benefiting both present and future generations.