Enhancing sustainability through green banking: Assessing its impact on environmental performance

The abstract serves both today’s banks, which are significantly impacted by unsustainability in direct and indirect ways. There is growing pressure within the banks of Pakistan to enhance sustainable banking practices; where these green banking practices are still in the initial stages of enhancing sustainability, banks face increasing pressure to improve their environmental performance. This study examines the impact of environmental performance by enhancing sustainable green banking practices, focusing on the moderating role of ecological obsessive passion in this relationship. Green banking practices are evaluated through micro-level factors such as operations, investments, and policies. The study also explores how obsessive environmental passion affects the relationship between banking practices and their impact on environmental performance. Data were collected using the partial least-squares structural equation Modelling (PLS-SEM) method from 241 respondents working for banks in Pakistan. The findings indicate that sustainable banking procedures, comprising operations, investments, and policies, have a considerable positive impact on environmental performance. Furthermore, the study discovered that environmental obsessive passion modifies the relationship between green banking practices and policies and environmental sustainability. However, the relationship between green investments and ecological performance remains. To increase sustainability, banks should include green practices in their fundamental operations, investments, and policies. It includes using energy-efficient technologies, encouraging paperless transactions, and funding environmentally conscious enterprises.