Green Banking: Initiatives By The Indian Banking System Towards A Sustainable Future
Green Banking: Initiatives By The Indian Banking System Towards A Sustainable Future

Author(s): Aniket Subhash Sakhare, Jinal Mukesh Soni, Shubham Pradip Badgujar
Subject(s): Financial Markets
Published by: Transnational Press London
Keywords: Sustainable development; green banking; banking industry; sustainable practices; annual report;
Summary/Abstract: Climate change is already a fact of existence. The economic costs of climate change are still being calculated. The world has become more vulnerable to natural disasters, the weather pattern is constantly shifting, and it is impossible to assess the economic consequences of these catastrophic events. Not only for us but also for the generations to come, this impact is anticipated to expand exponentially in the decades to come. Appropriate action needs to be taken to minimise this extent and adequate policies need to be adopted to reduce the impact of human activities on the environment. The world has adopted the concept of green economy and companies are paying attention to the environmental impact caused by their operations. The idea behind green banking is the same because it comprises the implementation of environmentally sustainable procedures in the banking industry and the consequential lowering of both internal and external carbon footprints. Furthermore, environmental impact may have a long-term influence on asset quality as well as bank rate of return.As a result, there is a growing necessity for banks to embrace environmental consciousness and proactively integrate ecological and environmental factors into their lending policies. This puts pressure on industries to invest in the required environmental management, suitable technologies, and effective management systems. A broader perspective is to use green lending principles. Typically, the banking industry is not regarded as an environmental threat. Nonetheless, it has an environmental impact due to increased consumption of energy and paper. This report examines the available literature and institutional public disclosures, such as annual reports, and focuses on the recent initiatives taken by the Indian banks.

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