Exploring The Role of Digital Transformation in Promoting Green Banking Via Environmental, Social, And Governance (ESG) Factors
Keywords:
ESG Integration, Green Banking Practices, Digital TransformationAbstract
This paper is an investigation of the paramount linking of environmental, social, and governance (ESG) factors and the implementation of green banking activities in the financial sector. As sustainability has been made a priority around the world, banks are incorporating the consideration of ESG in their operations to tackle the burning issues like climatic change, conservation of resources and social equity. The study narrows down and discusses how the environment determines its effect, how social aspects affect the same, and how governance structures contribute towards sustainable banking behaviour. The relationships between ESG factors and green banking adoption were analysed using a comprehensive methodology which entailed the data collection through survey and interviews, and document analysis and Structural Equation modelling (SEM). The results show that environmental factors are the strongest drivers with social and governance factors in the second and third position respectively, but with a unique but interrelated role in promoting green banking practises. These findings are consistent with the available literature, which puts more emphasis on holistic approach to integration of ESG in order to attain sustainability. The research helps to the body of knowledge that exists in regard to green banking and it makes meaningful implications to the policymakers, financial institutions and the stakeholders to develop sustainable development by practising responsible banking. It also gives a basis to the future study to examine the region-specific dynamics, technological advancements, and sustainability results in the banking industry.
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