Driving Sustainability: Exploring Global Green Banking Initiatives for a Greener Future

Abstract

Environmental degradation threatens survival of entire Global system. Global warming has been a national and international issue in recent years. Environmental challenges harm businesses directly and indirectly. Although several regulations to control pollution and protect the environment, they are not enforced, therefore we have failed to prevent environmental damage. So, all business policies focus on environmental issues. In a worldwide economy, regulators, governments, media, judiciaries, civil society organisations, and social activist groups are analysing industry and corporate environmental impacts and pressuring them to become greener. Hence, ethical regard for the environment is transforming global corporate sectors into green, ecologically friendly ones. The banking sector as a business sector is not excluded from this initiative. Consequently, encouraging environmentally friendly initiatives and prudent lending should be one of the financial industry’s obligations. Hence Banks and other financial companies are streamlining carbon emission reduction. Banks worldwide are investing in green strategy. These actions, part of a larger sustainable development plan, have created the concept of Green Banking. In the realm of finance, Green Banking is a relatively recent concept. It varies from conventional banking in that it considers environmental considerations while deciding whether to grant a loan. The green finance movement is young but expanding fast enough to replace fossil fuel investments. So, future demand for green financial products is expected to rise. In light of this, the present study compiled a list of a few global banks that have implemented Green Banking initiatives. Consumers are able to safeguard the environment and work to mitigate the effects of climate change while also doing their typical banking operations online. This research study is intended to analyse the various Green Banking Initiatives that have been implemented by a selected financial institution worldwide. The focus of the study has been narrowed down to five financial institutions from around the world that were actively engaging in green banking initiatives through their customers’ active participation namely Starling Bank, Treecard, Aspiration, bunq and Tomorrow and Green Banking Initiatives in Indian Scenario. The annual reports of the chosen financial institutions, sustainability reports, official websites of the concerned banks, and other sources are sorted through in great detail for the purpose of gathering data on the green banking activities initiated by these financial institutions.