Green Banking Initiative: Reducing the Carbon Footprints

Abstract

Environmental concerns are becoming more prevalent in all sorts of businesses; yet banking has a unique position due to its capacity to impact the country's economic growth and development. The current research proposes a conceptual model for green banking initiatives and investigates the impact of three green banking initiatives, namely green product development, green corporate social responsibility, and green internal process, on two possible outcomes, namely green brand image and green trust. The qualitative research consists of 36 semi structured in-depth interviews with middle- to senior-level managers from twelve public and private Indian banks. The banking sector may play a major role in greening the banking system by expanding the availability of credit and supporting the needs of a "green economy." According to the study's findings, 63 percent of all respondents believe their bank is working on several green banking products and services, 53 percent of bankers believe their bank uses green internal processes in their daily operations, and 78 percent believe their bank is involved in several green corporate social responsibility initiatives. Furthermore, more than 60% of respondents stated that green banking initiatives play a positive impact in regaining customer trust through improved green brand image, according to the study. The current qualitative study adds to the body of knowledge and sets the road for future research in green banking for sustainable development in India, where there are few studies on the subject. Today, sustainability is an “emerging mega-trend" and a critical business goal for driving green business innovation. Cisco, HP, and Walmart, for example, have successfully integrated it into their business procedures. Because of environmental concerns among marketing scholars and practitioners, the relevance of green marketing in the current setting is obvious. Environmental inequality has come from industrialization, and corporations are prospering at the expense of local communities. Natural and industrial disasters have come from uneven industrialization, which has disrupted ecological balance. Environmental contamination at high levels has sparked public awareness about environmental issues. Diverse firms are becoming increasingly concerned about the environment. The manufacturing, technology, electronics, and information technology businesses are all willing to adopt environmental stewardship as a top corporate priority. Banks play a critical role in a country's long-term growth, and green banking has become a buzzword. The financial services market is reshaping because of financial, economic, and environmental changes, and an all-encompassing engagement of ethical proposals and values into banking practices is taking place. By diverting funds to climate-sensitive projects, the banking industry helps the adoption of environmentally beneficial initiatives, mitigates climate risks, and supports recovery. As environmental and green banking have become synonymous with long-term viability, banks are emphasizing their corporate social responsibility (CSR) efforts. Banks across the world are investing heavily in green measures to project a positive image. Greening banks reduces carbon footprints from financial activities even further, which benefits banks, industry, and the economy. Green banking has been the subject of numerous research in the past. Green bank marketing is included as part of a bigger CSR approach. Banks of economic actors play a critical role in funding environmentally friendly projects and thereby contribute to society. In the non-banking industry, the relationship between green marketing and CSR was explained. The primary focus was on the development of green services.) They also believe that implementing sustainable banking methods can be a powerful stimulant for long-term development, and they point to a lack of sustainable banking studies in Indian banks. underlined the importance of incorporating green banking projects into day-to-day operations and discussed the critical role that green banking plays in building economies on a social, corporate, and environmental level.