FINANCIAL PERFORMANCE AND SUSTAINABLE DEVELOPMENT – AN ANALYTICAL STUDY ON GREEN BANKING IN INDIA
Abstract
In today’s twenty first century environmental issues like global warming and climate change have become a reality. Environmental efforts therefore no longer focus on prevention but mitigation. The concept of sustainable development has gained in importance as it has been foreseen that economic growth without considering its impact on the natural environment will reduce the quality of life in the near future. Business houses have the financial resources necessary to facilitate sustainable development. Green Banking refers to every green initiative adopted by a bank either in its policy framing or in its day-to-day operations. This paper is based on secondary data. The main objectives of this study are to analyse the impact of Green Banking initiatives on Return on Equity, to analyse the impact of these initiatives on financial performance of the bank sand to understand the impact of Green Banking on sustainable. Statistical tools like multiple regression and correlation analysis have been used in order to study the impact of Green Banking initiatives on financial performance. A qualitative model of the DuPont Analysis has been used to study the impact of Green Banking initiatives on Return on Equity. The findings of this study conclude that Green Banking initiatives have a definite positive impact on the financial performance of banks, Return on Equity of banks and on sustainable development.
Keyword : Sustainable development, Green Banking, Climate Change, Corporate Sustainability
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Porter, M., & Linde, C. (1995). Green and Competitive: Ending the Stalemate. Harvard Business Review , 121-134. Walley, N., & Whitehead. (1994). It’s Not Easy Being Green. Harward Business Review , 2-7. Palmer, K., Oates, W., & Portney, P. (1995). Tightening Environmental Standards: The Benefit-Cost Or The No-Cost Paradigm? Journal of Economic Perspectives , 9 (4), 119 – 132 . Shrivastava, P. (1995). The Role Of Corporations In Achieving Ecological Sustainability. Academy of Management Review , 20 (4), 936-960. Shrivastava, P. (1995). Environmental Technologies And Competitive Advantage. Strategic Management Journal , 16, 183-200. Hart, S., & Ahuja, G. (1996). Does it pay to be green? An empirical examination of the relationship between emission reduction and firm performance. Business Strategy and The Environment , 5, 30-37. Klassen, R. D., & McLaughlin, C. P. (1996). The Impact Of Environmental Management On Firm Performance. Management Science , 42 (8), 1199-1214. Russo, M. V., & Fouts, P. A. (1997). A Resource-Based Perspective On Corporate Environmental Performance And Profitability. Academy of Management Journal , 10 (3), 534-559. Reinhardt, F. L. Environmental Product Differentiation: Implications for Corporate Strategy. California Management Review , 40, 43-73. Sharma, S., & Vredenburg. (1998). Proactive Corporate Environmental Strategy And The Development Of Competitively Valuable Organizational Capabilities. Strategic Management Journal , 19, 729-753. Dowell, G., Hart, S., & Bernard, Y. (2000). Do Corporate Global Environmental Standards in Emerging Markets Create or Destroy Market Value. Management Science , 1059-1074. King, A., & Lenox, M. (2001). Does it Really Pay to be Green? An Emperical Study of Firm Environmental and Financial Performance. The Journal of Industrial Ecology , 5 (1), 105-116. Konar, S., & Cohen, M. A. Does The Market Value Environmental Performance. The Review of Economics and Statistics , 83 (2), 281-289. Marrewijk, M. v. (2003). Concepts and Definitions of CSR and Corporate Sustainability: Between Agency and Communion. , Journal of Business Ethics , 44 (2), 95-105. Biswas, N. (2011). Sustainable Green Banking Approach: The Need Of The Hour. Business Spectrum , 1 (1), 32-38. Bahl, S. (2012). The Role Of Green Banking In Sustainable Growth. International Journal of Marketing, Financial Services and Management Research , 1 (2), 27-35. Singh, M. K. (2013). Concept Of Green Finance And Its Viability In India. Yadav, R., & Pathak, G. S. (2013). Environmenal Sustainability Through Green Banking: A Study on Private Sector and Public Sector Banks in India. OIDA International Journal of Sustainable Development , 6 (8), 37-48. Meena, R. (2013). Green Banking: As Initiative For Sustainable Development. Global Journal of Management and Business Studies , 3 (10), 1181-1186. Nath, V., Nayak, N., & Goel, A. (2014). Green Banking Practices – A Review. IMPACT- International Journal of Research in Business Management , 2, 45-61. Brundtland, G. H. (1987). Our Common Future: Report of the World Commission on Environment and Development. Geneva: United National World Commission on Environment and Development. KPMG. (2022). Corporate Sustainability: A Progress Report. KPMG. Finacle. (2012). Green Banking - A thought paper. Infosys. Twelfth Five-Year Plan 2012-2017 . Planning Commission (Government of India). IDRBT. (2013). Green Banking. IDRBT Publication. IPCC. (2014). Climate Change 2014 - Synthesis Report. Hawkin , P. (1993). The Ecology of Commerce. Harper Buiness. Baroda, B. o. (2022). Annual Report 2021-22. India, B. o. (2022). Annual Report 2021-22. Maharashtra, B. o. (2022). Annual Report 2021-22. Maharashtra, B. o. (2022). Annual Report 2021-22. Bank, C. (2022). Annual Report 2021-22. India, C. B. (2022). Annual Report 2021-22. Bank, I. (2022). Annual Report 2021-22. Bank, I. O. (2022). Annual Report 2021-22. Bank, P. &. (2022). Annual Report 2021-22. Bank, P. N. (2022). Annual Report 2021-22. India, S. B. (2022). Annual Report 2021-22. Bank, U. (2022). Annual Report 2021-22. India, U. B. (2022). Annual Report 2021-22. Bank, A. (2022). Annual Report 2021-22. Ltd, B. B. (2022). Annual Report 2021-22. Ltd, C. B. (2022). Annual Report 2021-22. Bank, C. U. (2022). Annual Report 2021-22. Ltd, D. B. (2022). Annual Report 2021-22. Ltd, D. B. (2022). Annual Report 2021-22. Ltd, F. B. (2022). Annual Report 2021-22. Ltd, H. B. (2022). Annual Report 2021-22. Bank, I. (2022). Annual Report 2021-22. Ltd, I. B. (2022). Annual Report 2021-22. Ltd, I. F. (2022). Annual Report 2021-22. lTd, J. &. (2022). Annual Report 2021-22. Ltd, K. B. (2022). Annual Report 2021-22. Ltd, K. V. (2022). Annual Report 2021-22. Ltd, K. M. (2022). Annual Report 2021-22. Ltd, N. B. (2022). Annual Report 2021-22. Ltg, R. B. (2022). Annual Report 2021-22. Bank, S. I. (2022). Annual Report 2021-22. Ltd, T. M. (2022). Annual Report 2021-22. Ltd, Y. B. (2022). Annual Report 2021-22. Ltd., I. B. (2022). Annual Report 2021-22.