GREEN BANKING INITIATIVES: EVALUATING THE ROLE OF BANKS IN PROMOTING ENVIRONMENTAL SUSTAINABILITY

Abstract

In recent years, the accelerating pace of environmental degradation, climate change, and resource depletion has compelled all sectors of the economy to embrace sustainability-oriented practices. Among these, the banking sector has emerged as a pivotal agent of change capable of influencing both corporate and consumer behaviour through its financial intermediation role. The concept of green banking represents an innovative approach in which banks integrate environmental and social considerations into their business operations, financial products, and decision-making processes. This study seeks to evaluate the role of banks in promoting environmental sustainability through various green banking initiatives, focusing on the mechanisms, outcomes, challenges, and policy implications associated with such practices. By examining existing literature, policy frameworks, and case studies from both developed and developing economies, the paper highlights how banks have begun to internalize sustainability into their operational, financial, and governance structures.