Development of a Green Banking and Green Financing Practice Model for Enhancing Sustainability Development Goals (SDGS)

Objective: This study is to investigate a green banking model based on green banking practices, green financing, and green environment to enhance sustainability development goals (SDGs). Theoretical Framework: The research focuses on developing green banking and financing practices to improve environmental performance in the Indonesian banking sector. Green Banking emphasizes sustainability in banking operations and products, while Green Financing promotes funding environmentally friendly projects. The study also draws on Stakeholder Theory, highlighting that banks are accountable to a wide range of stakeholders. Method: The research stages include the development of instruments, questionnaire distribution, data collection, and data processing using a sample of 54 respondents, selected using convenience sampling. Data testing and processing were carried out using SmartPLS software. Results and Discussion: The analysis of banking employees and practitioners revealed that Banks' Customer-Related Practices (BCRP), Employee-Related Practices (BERP), and Operation-Related Practices (BORP) positively impact Green Environment Performance (GEP), whereas Banks' Policy-Related Practices (BPRP) do not. Additionally, while BCRP, BERP, and BORP showed no significant influence on Green Financing (GF), BPRP demonstrated a notable positive effect on Green Financing (GF). This result also show that Studies on Bank’s customer behavior change towards sustainability and its influence on the SDGs. Research Implications: Banks can implement specific green practices to improve their sustainability development goals (SDGs). The study reinforces Sustainability Theory by highlighting the importance of balancing environmental, social, and economic concerns in banking operations, confirming the need for a "Triple Bottom Line" approach in business models. Originality/Value: The originality of the research is demonstrated through its Studies on Bank’s customer behavior change towards sustainability and its influence on the SDGs by integrating multiple theoretical perspectives.