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There is a global concern over climate change issues. The banking sector is expected to join the initiatives in solving environmental issues, even though banking sectors have no direct contribution to environmental damage. Banking commitment to environmental issues is required. The banking sector should have a responsibility for monitoring and managing the impacts of the ecological effects as the result of their business activities. The advantages of green banking implementation are that bank can avoid the use of paper by utilizing online transaction for their daily operation such as internet banking, SMS banking, and ATM. This will bring in the paperless operation into the banks, which in turn will reduce the logging of the forest. Banks also can develop an environmentally friendly lending policy for their business activities. This research aims to determine the impact of green banking daily operation, green banking policy (GBP), capital adequacy, non-performing loan (NPL), bank efficiency, and bank liquidity on bank profitability. The sample of this research is the Indonesian banking sector during the period 2012–2016. The results showed that green banking daily operation, capital adequacy, and bank liquidity have a positive effect on bank profitability. GBP and bank efficiency negatively affect bank profitability, while the NPL did not have a significant impact on banks’ profitability.

The purpose of this study is to empirically examine the determinants and outcomes of Green Banking adoption and the moderating influence of top management commitment under the corporate environmental ethics ideology. External stakeholder pressures are analyzed as determinants of Green Banking adoption. Brand image and operational efficiency are examined as outcomes of this business ideology. Green Banking adoption is adapted as a second-order construct with four first-order reflective constructs to ensure in-depth conceptualization of the construct.

Green Banking adoption is studied at the bank branch level in a developing country, i.e. Pakistan. The data is collected from the branch managers of 212 bank branches from five major cities of Pakistan through mails. Self-administered survey was used for the data collection. The data was analyzed through the application of partial least square-structured equation modeling in SMART PLS 3.2.9. The measurement model and the structural model of the research framework were analyzed through the two-stage approach of the second-order analysis.

The results indicate a positive relationship between customer and competitor pressure and Green Banking adoption among bank branches in Pakistan depicting an influence of various environmental ethical pressures on bank’s adoption practices. Community pressure was shown to have no significant influence on Green Banking adoption at the branch level. The moderator of top management commitment caused a positive influence on the relationship between all the studied stakeholder pressures and Green Banking adoption. Branch managers reported branch image and operational efficiency to be enhanced due to Green Banking adoption.

This study attempts to fill in the significant gap in Green Banking adoption literature through an empirical analysis of Green Banking’s second-order construct. Currently, limited literature exists on the various aspects of Green Banking adoption, and an empirical study has not been conducted at the bank branch level. The study contributes significant practical, theoretical and methodological contributions to the area of Green Banking.

The main purposes of the study were to investigate the ethical banking operations based on the award-winning the UK Co-operative Bank which has successfully brought significant implications on sustaining the nation’s (the UK) socioenvironmental development. The Co-operative Bank operations are conceptualised into a solid ethical banking operations framework (EBOF) to contribute theoretically into enriching the body of the knowledge. Besides, by understanding the EBOF of an ethical banking system, the other banking players like the Malaysian bank can learn from this best practice and gradually shape its operation to become more ethical.

The case study on the UK Co-operative Bank was based on primary data collected through a series of qualitative focus group conducted on 20 senior bank managers who were interested and were supportive of this research project. These experienced respondents are actively involved in the Co-operative Bank’s “Corporate Ethical Policy” formulation, as well as the implementation of this policy into the Co-operative Bank’s daily operations. Besides, secondary data are reviewed to obtain a more comprehensive understanding on the Co-operative Bank. The research began in December 2012 and was completed in August 2014. The main reason the researchers opted for qualitative studies is to comply with the criteria of inductive approach, whereby the final outcomes (EBOF) include the crystallisation of the ethical banking operations, which could be generalised theoretically and empirically.

At the end of the study, EBOF based on the Co-operative Bank’s ethical operations (as the case studied) is constructed. As a conclusion, the Co-operative Bank has done tremendously well in sustaining the UK’s socioenvironmental development, which justifies the reason why the Co-operative Bank has won numerous prestigious awards and is being well recognised nationally and regionally.

The novelty concept of ethical banking is driven by the global socioenvironmental initiative that influences some of the major financial institutions which are proactively and gradually shaping their corporate image in safeguarding the community around the environment. This research has successfully attained the ultimate objective to foster knowledge transfer through learning from the best (from the UK Co-operative Bank) in shaping local (Malaysia) ethical banking.

This study constructs the EBOF based on the Co-operative Bank’s ethical operations that could be empirically disseminated and adopted in other banks’ operations (across the globe). This is aimed in shaping the local banking industry to become more ethical (learning from the best practice of the UK Co-operative Bank) in wealth creation that places high emphasis on socioenvironmental benefits rather than economic gain on profit maximisation alone. Besides, the EBOF contributes and enriches the body of the knowledge about ethical banking operations.

The purpose of this study is to propose Green Banking best practices for the adoption of this business construct based on the dimensions of environment, social and governance (ESG). This paper proposes a number of green practices under the ESG dimensions that can be adopted by individual banks at any stage of Green Banking adoption. It provides tactics for implementing this business construct that can serve as a tool for regulatory authorities forming Green Banking guidelines or policies for adoption. Such research has not been undertaken up until now.

The Green Banking adoption model is based on the concept of human ecology in which the inter-dependency and inter-connectivity of the variables impacting the phenomenon of environmental sustainability. These influencing variables are, in turn, connected with the natural environment. In the proposed model, the variables of ESG are inter-connected and impacting the natural environment as well. The proposed best practices have been derived from the Green Banking practices of the global industry leaders and Green Banking regulations of developed and developing countries. It can be beneficial to the stakeholders, as it proposes a step-by-step guide to Green Banking adoption that can be followed either sequentially or in parallel by the banks.

Green Banking adoption can be achieved by banks through implementing certain practices in either sequential or parallel manner. The adoption process depends on the various external and internal environmental dependencies. The Green Banking adoption practices can be broken down in three areas, i.e. ESG, allowing the construct optimal depth of coverage and complexity.

The literature on Green Banking is steadily increasing but a lack of research exists in the area of Green Banking adoption. Currently, limited literature exists that can provide the banking industry or the regulatory authorities with a framework or guideline to adopt Green Banking.

There is a dearth of empirical research examining the influence of various facets of sustainable banking on the environmental sustainability performance (SP) of banks in developing economies like Bangladesh. This study looks at how green banking practices (GBPs), green finance (GF) and corporate social responsibility (CSR) practices affect SP in both direct and indirect ways.

The research framework of this study was designed based on legitimacy theory to examine the direct and indirect impacts of GBP on environmental SP through GF and CSR practices. Based on a structured questionnaire and convenience sampling, the data were collected from banking institutions to investigate the association among the study variables. Subsequently, the obtained data were evaluated using a well-established structural equation modeling (SEM) approach via SmartPls 4.0 software.

The empirical findings reveal that GBP has a significant direct impact on GF, CSR practices and the banks' SP. Further, the findings show that GF has a direct and significant impact on CSR practices and SP. Likewise, CSR practices have a direct and significant influence on the SP of banks. Additionally, among indirect effects, both CSR practices and GF mediate the association between GBP and SP, whereas GF also has an indirect effect on the relationship between GBP and CSR practices. Surprisingly, the findings demonstrate that CSR practices do not have an indirect effect on the association between GF and SP. Hence, the greater the bank's involvement in green banking activities, the greater the influence of green financing and CSR practices on environmental sustainability.

This study adds to the growing body of research in the areas of sustainable banking and environmental sustainability literature by evaluating the link between GBP, CSR practices, GF and SP. Besides, this is a ground-breaking study that examines both direct and indirect effects of different aspects of sustainable banking (GBP, GF and CSR practices) on the SP of the banking industry in an emerging country like Bangladesh. On the theoretical level, it adds to the application and expansion of legitimacy theory in the sphere of banking and finance. It provides new insights into the dynamics of green banking, GF and CSR practices within the framework of legitimacy theory. Hence, the current study offers significant suggestions to managers, academicians and researchers on how to advance the sustainability of the banking industry by adopting green banking, GF and CSR practices.

Financial institutions, including banks, have their responsibilities to contribute towards the preservation of the environment. Green banking is an emerging concept that involves eco-friendly initiatives by banks and although Mauritius lacks a comprehensive regulatory framework for green banking, there exists a few green regulations and guidelines. Accordingly, the purpose of this study is to critically analyse the existing legal and regulatory framework on green banking in Mauritius. It is expected that this study will showcase the need for some more robust and proper green banking legal and regulatory framework in Mauritius.

To achieve the research objective, a black-letter analysis is used to analyse the existing regulatory framework in Mauritius. Moreover, a comparative analysis of the current legal frameworks on green banking in countries like Bangladesh, Indonesia, Pakistan and the UK is carried out.

This study recommends the establishment of a guideline or legal framework for green banking, a Sustainable Finance Policy, a legal binding framework for issuance of bonds, adoption of a Task Force on Climate-related Financial Disclosure guideline, compulsory environmental reporting and disclosures and a green standard rating.

To the best of the authors’ knowledge, this research is among the first literature on green banking laws, especially in the context of a developing country being Mauritius, and it is anticipated that the findings are of use not only to academics but also to the wider community in general.

The purpose of this article is to study green banking practices, its methods of adoption and importance of practicing green banking. This study also includes the role and contribution of banks in environmental sustainability and UN Sustainable Development Goals.

The current research paper is conceptual in nature, based on a thorough literature review, websites of financial institutions and literature evaluations among other sources. This study has been supplemented by a variety of research journal articles. The websites of many banks including SBI (State Bank of India) and MayBank (Malaysia) were used and reviewed to know about various green banking practices both nationally and internationally and their contribution toward sustainability.

The devastating effects of recent flooding, droughts and extreme temperatures that several people all over the world have experienced compelled everyone to begin thinking about global warming and its consequences, and to do everything that can be done to address this problem. Governments, businesses and individuals all play a part in preventing global warming and creating a more sustainable world. People have to deal with financial institutions, particularly banks, which play a vital role in this environment by assisting in the development of a robust and successful low-carbon economics. They should make more use of environmental data when extending credit and making investment decisions. The project will assist them in proactively improving their environmental performance while also adding long-term value to their company. Businesses having a bigger carbon output may be viewed as riskier in the future, and banks may shy away from funding such businesses in favor of innovative technology solutions that absorb or reduce carbon emissions. As a result, green banking is the order of the day, a source for sustainable development and it will undoubtedly benefit banks, industries as well as the environment at large.

The theoretical implications can be summed in the following points: (1) there is no universally accepted framework for green or sustainable banking so far. However, green banking practices are at different stages of development across countries. As per the case of India, green banking practices are at a development phase in India, and green processes have a significant impact on sustainable development. (2) The study is one of the first of its kind in the academic literature as it links green banking practices with sustainability besides discussing green banking practices of the top public sector Bank of India and top commercial bank of Malaysia. Despite the significant contributions made by this study, many disadvantages should be addressed for future research. The present work was chosen for comfort, it was restricted to green banking practices of two banks only, which limits conclusion and interpretation of outcome to some extent Future research can be conducted by a comparative study with the top green banks or with the cleanest country of the world or green banking practices by those banks toward sustainability in that country can also be a good area for research

Managerial implication: The study is extremely helpful to the banking industry in determining the scope of green banking initiatives in sustainable development. This study is a prime study in India to interrelate banking industry towards sustainability and two UN SDGs besides green banking practices of banks. This paper has noted the areas where the banks can make progress for the greener, sustainable economics. It has also aided the banking industry in identifying areas for development so that it may focus on improving social satisfaction and satisfaction of stakeholders across its operating areas. The study is also very helpful for banks to comprehend how vital these green initiatives, especially green processes, are to improve sustainability.

The study will serve as a gauge for banking actions toward greener nations and a greener world since these are the efforts toward Carbon Free World, Efforts for controlling global warming, efforts for the greener planet in general which undoubtedly is a significant long-term service to society a reason for better climate and better tomorrow.

This paper identifies the need for green banking in sustainability. This article also summarizes the notion of green banking besides outlining some methods and analyzing green banking initiative by SBI (State bank of India) of India, MayBank of Malaysia & UNSDG .

Currently, one of the most important dilemmas facing mankind is environmental degradation and natural resource shortage. The adoption of Green Banking practices has been identified as a solution to the growing environmental problems all over the world. However, an important issue being faced by both the conventional and Islamic banking industry is the creation of stakeholder engagement in Green Banking practices. The purpose of this paper is to propose the use of Islamic principles in developing an emotional attachment between Green Banking practices and the Muslim consumer market to facilitate Green Banking adoption.

Based on the theory of self-congruity, the authors have proposed a framework to analyze the congruity between Islamic principles and Green Banking. The argument is built on secondary data by identifying the Environmental, Social and Governance (ESG) dimensions of Green Banking and proving its congruence with teachings of the Holy Qur’an and Sunnah.

It is observed that the doctrine of Islam established for mankind 1,400 years ago consists of the same principles that are now being implemented in the shape of Green Banking. The dimensions of Green Banking are in line with Islamic teachings and, thus, can easily be adopted and marketed by banks, especially Islamic banks, targeting the Muslim consumers. The congruence of Green Banking with Islamic principles can play a major role in fostering the growth of this imperative ideology for the Green Muslim consumers. Islamic banks can market green products and services on the basis of religious congruity to the Muslim consumer market and create greater acceptability and loyalty.

The proposed model has not been empirically tested.

Limited research exists in the area of Green Banking adoption, especially in Muslim countries. Up until now, academic research has not been conducted on the congruity between the principles of Islam and Green Banking dimensions. This paper attempts to add to the unsaturated research area of Green Banking adoption by Islamic banks and how Islamic banks can gain a competitive advantage by building on the congruity between Green Banking and Islam.