THE NEXUS BETWEEN SUSTAINABLE GREEN PRACTICES AND FIRM FINANCIAL PERFORMANCE: A CRITICAL PERSPECTIVE OF COMMERCIAL BANKS IN PAKISTAN.

Abstract

Sustainable Green banking is a new expansion in the financial world while considering the community environment impression and its significant intention to protect and preserve the environment. The greatest challenge for the corporate sector, including banking and financial organization, is not directly affected by ecological deprivation. The research's core objective is to become aware of the sustainable green banking initiatives of Pakistan's banking institutions and their impact on commercial banks' financial performance in Pakistan. This study also evaluated the parameter of the green banking practices of the banks. This research-based on secondary data connecting to financial performance and green banking initiatives (online banking, mobile banking) of the commercial banks in Pakistan for the period between 1^s January 2014 to 31^st December 2020. The secondary data was collected from the financial reports of the commercial banks in Pakistan. This research study concluded that green banking positively impacted financial performance and is Significant at 95% confidence level as the level of sig = 0.001 where p < 0.05. It means that the increase in green banking initiatives increases financial performance. This association is essential for commercial banks in Pakistan. Therefore, it can enforce commercial banks' management to be worried about green banking practices implementation as it is significant in the influential economic performance parameter