Fostering Sustainable Environmental Performance Through Green Banking Practices: The Mediating Role of Employees’ Green Motivation and Green Behavior

This study intends to ascertain the correlation between green banking practices and the sustainable environmental performance of private banks. It further investigates the mediating role of employee green behavior and motivation. This study used a quantitative research method to test the study hypotheses. A standardized questionnaire with a 5-point Likert scale was utilized to collect data for the survey. The sample size consisted of 376 respondents who were conveniently selected. Data were analyzed using PLS software (Version 4.0). The main finding is that employees’ green motivation mediated the link between employee-related and customer-related green practices and a bank’s environmental performance. Equally, employee green behavior mediated the link between employee-related, operation-related, and customer-related green practices and a bank’s environmental performance. This study is one of few in Bangladesh’s banking sector that provide a comprehensive overview of green banking practices, employee green motivation and behavior, and their connections to banks’ sustainable environmental performance.