The ethical path to green excellence: how responsible banking practices and green financing thrive on knowledge sharing and shared values in Pakistan

Purpose The purpose of this study is to measure the impact of bank customer-related practices (BCRPs) on green financing (GFIN) while investigating the mediating role of green banking activities (GBACs) and moderating role of employee green values (EMGVs) and green knowledge sharing (GKSH). Design/methodology/approach This study used a structured questionnaire to collect primary data from 518 bank employees. A stratified sample approach was applied to divide the banking sector into four main categories: conventional banks, Islamic banks, microfinance banks and specialized banks. Furthermore, additional data exploits a two-stage structural equation modeling tool, and measurement models were used to confirm the essential validity and dependability of the instrument. Conversely, by using a structural model, the strength of relationships between the underlying variables were established. Findings The present investigation found a positive and significant impact of BCRP on both GFIN and GBAC in addition to the direct influence of GBAC on GFIN. Additionally, this study discovered that GBAC mediated the link between BCRP and GFIN. Additionally, this investigation validated the moderating effects of EMGV on the relationship between BCRP and GBAC and GKSH on the link between GBAC and GFIN. Originality/value To guarantee environmental sustainability through green banking and green finance in Pakistan, this study contributes to the body of knowledge and degree of skill already in existence. Thus, based on this study’s findings, the banking industry in Pakistan and other developing nations may create green finance policies and products to guarantee a green environment through green finance and banking practices.