Implementation of Green Banking Indicators in Sharia Banks: Study of Regulations and Application

This article analyzes legal stipulations that regulate the application of green banking and Sustainable Development Goals (SDGs) in Indonesia. Its primary focus involves an analysis of Green Banking indicators in the context of Sharia Banks and how their application can support the achievement of SDGs. The indicators that determine green banking activities are called the Green Coin Rating (GCR), and there are six indicators of GCR: carbon emission, green reward, green building, reuse/ recycle/ refurbish, paperless, and green investment. This article also explains the regulatory framework that supports sustainable development efforts in the banking sector. It primarily analyzes regulations that contain green banking and SDGs, in this case, the Regulation of the Financial Service Authority No. 51/POJK.03/2017, which obliges the financial sector to apply sustainable finance. Bank Syariah Indonesia (BSI) and Bank Muamalat are examples of leading banks that have applied environmentally friendly practices through green banking. This research highlights the contribution of Sharia banks to the Sustainable Development Goals (SDGs) in Indonesia through initiatives and research on sustainable development. It also evaluates how far Green Banking contributes towards environmental protection, which becomes a crucial aspect in the effectiveness of its application.