Role of Banks in Promoting Sustainable Business Practices
DOI:
https://doi.org/10.64882/ijrt.v14.iS1.997Keywords:
Sustainable Banking, Green Finance, ESG, Sustainable Business Practices, Secondary DataAbstract
The growing emphasis on sustainability has expanded the role of banks beyond traditional financial intermediation to actively promoting sustainable business practices. This study examines the role of banks in fostering sustainability through green financing, integration of environmental, social, and governance (ESG) criteria, sustainable investment instruments, and financial inclusion initiatives. The research is based exclusively on secondary data collected from published bank annual reports, sustainability and ESG disclosures, regulatory guidelines, reports of central banks, and existing academic literature. The study analyses trends and initiatives adopted by banks to support environmentally responsible and socially inclusive business activities. The findings reveal that banks play a significant role in directing capital towards renewable energy projects, eco-friendly enterprises, and sustainable business models while enhancing risk management and long-term financial stability. However, challenges such as lack of uniform sustainability reporting standards, limited disclosure practices, and regulatory constraints hinder the effective implementation of sustainable banking. The study concludes that strengthening regulatory frameworks and improving transparency can enhance the contribution of banks toward sustainable business development.
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