An Empirical Investigation of Sustainability in Finance: Exploring Determinants and Sustainability Performance in the Banking Sector

The present study undertakes a comprehensive investigation into the intricate relationship between green finance practices and the sustainability performance of the Indian banking sector. Drawing on the influential triple bottom line concept proposed by John Elkington, this study analyses the impacts of green finance practices, exploring their financial, environmental, and social implications in great detail. Through a rigorous and systematic analysis, the present study identified 13 key determinants of green finance practices and further examined the profound and far-reaching impact of these practices on the overall sustainability performance of the banks under investigation. The sample of this study encompasses the top 10 major banks in the Indian financial sector, comprising both public and private institutions. To gather comprehensive insights, the study distributed a detailed questionnaire of 23 statements to the employees of these banks, collecting a total of 688 responses. Employing advanced qualitative analysis techniques, such as exploratory factor analysis and confirmatory factor analysis, the findings of this study provide compelling evidence that green finance practices have a significant and highly positive influence on the overall sustainability performance of Indian banking institutions.