The Nexus between Green Banking Practices and Environmental Performance in Selected Private banks in Colombo District in Sri Lanka

Abstract

"Green banking" is a new concept that has recently emerged in the banking industry. It basically promotes environmentally friendly practices and lowers the carbon footprint of banking activities. Green banking has gained much popularity in recent years and is being increasingly adopted by banks. Number of commercial banks have paid more attention to implementing green banking practices to improve their banking performance as well as compliance with legal requirements. In this context, this study aims to measure the levels of green banking practices and sustainable performance and examine the impact of Green Banking Practices on the environmental performance of banks. To achieve the study objectives, primary data were collected from 50 employees of selected private banks which is operating in the Colombo district of Sri Lanka. This research aims to increase the level of green banking practices and Environmental Performance. The stratified random sampling method and the unit of analysis were individual employees used for the research. Simple regression analysis was used to test the research model. The study's findings showed that the selected private banks' Environmental Performance is impacted by their strong adoption of green banking practices. Findings of this study will be useful to practitioners and academicians to understand the variability between green banking practices and Environmental Performance. This study suggested banks need to focus more on the implementation of green banking practices to ensure bank sustainability.