Green ınvestment and financial efficiency as catalysts for SDG progress: Evidence from Bangladesh’s banking sector

This study examines the influence of green finance and key financial indicators on UN Sustainable Development Goals (SDGs) in Bangladesh’s banking sector. Analyzing panel data from 10 commercial banks (2011–2023), the study assess the relationship between five SDGs (3, 4, 5, 8, and 9) and seven financial variables: green expenses, ROE, ROA, market value of shares, leverage ratio, dividend payout ratio, and R&D expenditure. Using OLS regression (EViews), the study finds that green expenses, ROE, and R&D positively and significantly affect SDGs 3, 4, 5, and 9, underscoring the role of sustainability and innovation. Conversely, ROA negatively impacts SDGs 3–5 and 9, while leverage harms SDGs 3–4, and dividend payouts hinder SDGs 4, 5, and 9. Market value shows minimal influence. The results emphasize green finance’s importance while cautioning against excessive asset-driven profitability and debt reliance.