Book Title: Advanced Studies in Multidisciplinary Research and Innovation (ASMRI)
Chief Editors: Dr. Jagdish Kumar Sahu and Dr. Krishna Ashutoshbhai Vyas
Associate Editors: Dr. N. Ramesh Chandra Srikanth and Dr. Lourdu Vesna J
Co-Editors: Dr. Aarti Sharma and Dr. Pushpa Mamoria
ISBN: 978-93-7183-010-2
Chapter: 29
DOI: https://doi.org/10.59646/745/29
Author: Dr. Sunil Adhav
Abstract
The concept of green banking has become a crucial approach to achieving environmental goals and driving sustainable economic development in the financial sector. The role of green banking practices in promoting sustainable financial development, including the implementation of environmentally friendly policies, green financing schemes, and digital banking solutions is discussed in this research paper. It reflects on the implementation of sustainability principles by financial institutions in their work, and their role in protecting the environment and economic resilience. The research design is mixed methods that incorporates quantitative banking data and reports and sustainability performance indicators, as well as qualitative data which are gathered through structured interviews and secondary literature search. The results indicate that green banking is an effective factor in sustainable financial development, as it provides incentives for investing in renewable energy, minimizing carbon emissions, adopting resource-saving methods, and improving corporate social responsibility. Banks that are proactive and implement green initiatives are exhibiting better risk management abilities, increased confidence in their stakeholders and improved convergence with global sustainability goals. However, the study also highlights some challenges, such as low customer awareness, regulatory inconsistencies, high implementation costs, and lack of technological infrastructure in some areas. Despite all this, green banking has demonstrated great potential in ensuring sustainable economic activities and the balance between profitability and environmental care. The paper also underscores the importance of policy and strategic interventions to boost the adoption of green banking, such as government policy support and positive financial incentives for green investments, strengthening environmental reporting requirements and raising public awareness campaigns. The study examines the correlation between green banking activities and sustainable financial development, highlighting the potential role of banking sector in fostering environmental sustainability and inclusive economic growth. The results offer valuable inputs for policy makers, financial institutions, investors, and researchers wanting to propel sustainable finance and responsible banking in a rapidly changing global economy.
Keywords: Green banking, Sustainable financial development, Sustainable finance, Green finance, Environmental sustainability, Renewable energy financing, Corporate social responsibility, Sustainable banking, Environmental risk management, Green investment