Abstract:
1. Introduction
Green banking promotes environmentally favorable practices by reducing
carbon footprints and supporting eco-friendly projects. It encourages
banks to reduce paper use, invest in renewable energy, and provide green
loans. The current banking sector in Sri Lanka is not fully engaged with the
green banking concept. This study aims to analyze the impact of green
banking adoption as a sustainable practice on banks’ environmental
performance in the Colombo district, Sri Lanka.
2. Research Methodology
This quantitative research study uses a structured questionnaire
distributed to 70 bankers in the Colombo district using the stratified
random sampling method. The researcher selected seven banks engaged in
green banking practices in the Colombo district. Multiple linear regression
analysis was employed to analyze the hypothesis. The research looks at
various green banking practices, such as bank employee-related practices,
bank operational-related practices, bank customer-related practices, and
bank policy-related practices on banks’ environmental performance in the
Colombo district.
3. Findings and Discussion
The findings elaborated that the bank’s employee-related practices, like
providing environmental-related training and education to employees, and
the bank’s policy-related practices, like establishing more green branches
and implementing environmental (green) policies, significantly impact the
bank’s environmental performance. On the other hand, the bank’s
customer-related and operational-related practices are not significant to
the bank’s environmental performance.
4. Conclusion and Implications
Findings suggest employee and policy-related practices significantly affect
environmental performance, while operational and customer-related
practices do not. The findings suggest increasing awareness about green
banking operations among bank staff, customers, and authorities using
educational training programs, seminars, etc
