The Impact of Corporate Social Responsibility on Climate Change Actions for Sustainable Performance: A Survey of Private Banks in Bangladesh Adopting Multi-Variable Analysis

As the world grapples with unprecedented climate change challenges, the banking sector has a unique opportunity to inspire sustainable transformation. This study reveals how climate-friendly banking practices can reshape the financial landscape in Bangladesh, presenting both risks and rewards. By integrating the natural resource-based view and stakeholder theory, we explore the dynamic relationship between corporate social responsibility (CSR) and innovative climate initiatives, revealing their effects on sustainable performance. Through an in-depth analysis of data from commercial banks in Bangladesh and utilising Structural Equation Modeling (SEM) via SmartPLS, we discover that while CSR's direct impact on sustainable performance may be limited, climate change actions emerge as vital mediators in this complex equation. Furthermore, the role of top management becomes essential in enhancing climate initiatives and organisational performance. This research does not only provide a fresh perspective for bank managers seeking sustainable strategies but also underscores the urgent need for climate-conscious approaches in emerging markets like Bangladesh. By aligning banking operations with environmental aspirations, financial institutions can mitigate climate threats while unlocking new growth avenues. This paper therefore demonstrates the critical role the banking sector can play in promoting sustainability by inspiring proactive strategies that can lead to transformative change.