Factors Affecting the Sustainability Performance of Financial Institutions in Bangladesh: The Role of Green Finance

Leveraging green finance and technological innovations for sustainable urban development: A comparative study of Chinese mega-cities

Being worlds' largest population, China is the biggest consumer of natural resources and causes the highest Carbon emissions due to its energy needs for economic development. This research aims to analyze the relationship between green finance, natural resources, carbon releases, and foreign direct investment on China's efforts towards durable economic sustainability. Difference-in-Difference frameworks are utilized to analyze the statistics acquired from 270 Chinese cities between 2002 and 2022. The findings indicate that the financial implications of carbon emissions significantly affect China's sustainable green economy. However, the short-term growth of the green economy is enhanced by the use of natural resources and the advancement of green financial markets. The results of this study provide empirical evidence that supports the theory positing a linear association among carbon releases, economic expansion, and natural resources. This study provides guidance to policymakers to make policies for enhanced and efficient use of natural resources. This may potentially contribute to the promotion of long-term sustainability in China and the facilitation of green growth.

Green banking practices and environmental performance: navigating sustainability in banks

The growing concerns about global climate change have thrust green banking and green finance into the forefront of discussions. The research suggests that green banking plays a pivotal role in advancing environmental sustainability. This study focuses on examining the profound impact of green banking practices on the environmental performance of banks, with a specific focus on both private and public sector banks operating in India through a survey involving 500 bank employees the study employed partial least squares structural equation modelling (PLS-SEM). The findings highlight various aspects of green banking, encompassing employee-related practices, operational procedures, customer engagement, and policy adherence, and significantly contribute to the promotion of green finance, resulting in substantial positive effects. Moreover, the study underscores the substantial and positive influence of banks' green financing on their environmental performance. Interestingly, the operational features of green banking practices emerged as having a notable impact on banks' environmental performance, whereas aspects related to employees, policies, and customers did not directly and significantly influence environmental performance. The results of the study carry significant policy implications, especially for India's banking sector, in the pursuit of environmental sustainability.

Does active transport create a win-win situation for environmental and human health: the moderating effect of leisure and tourism activity

The current environmental crisis is mostly due to global warming. Promoting walking and cycling requires both the availability of green public areas (such as parks, green paths, and greenways) and a mentality that values such active modes of transportation. Significant health advantages from increased physical activity (PA) are associated with transportation options like walking and cycling (sometimes known as "active transportation," AT): the health and environmental advantages of encouraging workers to use bicycles for transportation been widely acknowledged. The authors of this research set out to fill this information gap by investigating the theoretically theorized links between green public space awareness and attitudes toward active mobility, adapting to a changing environment, and improving one's mental and physical health, with leisure and tourist activities serving as a moderator. The data was collected quantitatively using purposive sampling and then analyzed using PLS-SEM. We surveyed Korean walkers (n = 282) and bikers (n = 315) online between May 25 and June 17, 2021, and used a partial least squares structural equation modeling (PLS-SEM) analysis to test our hypothesis. As stated in the findings, being conscious of green public space when using active transportation significantly affects how clean the air feels. Active transportation was shown to have a significant effect on health, and climate change mitigation efforts were found to have a significant effect on health. Those who used active transportation for tourism had a stronger connection between green public space awareness and air quality, in addition to environmental sustainability and ethical conduct mitigation, than those who used active transport for recreation. Therefore, the model may aid in locating transport and health scenarios that benefit both sectors.

The impact of green finance and local regulations on industrial green innovation efficiency in China

When the incentive mechanism of green finance fails to fully promote green technology innovation in industrial enterprises, local government environmental regulations become an important tool in correcting this market failure. However, due to the "follow the cost" hypothesis, the moderating effect of the local government environmental regulation is heterogeneous. In order to explore the impact mechanism of green finance development on the efficiency of green technology innovation in industrial enterprises, spatial effects as well as the heterogeneous moderating effect of local government environmental regulation, this paper systematically evaluates the development level of green finance in 30 provinces in China from 2009 to 2019. It estimates the efficiency of green technology innovation in industrial enterprises using the super-efficiency SBM model, and empirically analyzes the impact mechanism and moderating effect using the spatial Durbin model. The results show that: (1) green finance not only positively impacts the efficiency improvement of green technology innovation in industrial enterprises but also has significant spatial spillover effects; (2) local government environmental regulation has a nonlinear "inverted U-shaped" moderating effect between the green finance development and the efficiency of green technology innovation in industrial enterprises. Based on the research conclusions, this paper proposes policy recommendations from the perspectives of deepening the regional connectivity of green finance and promoting joint regulation by local governments.

Knowledge risk management in banks - An area for improving organizational performance

Research on the topic of knowledge risks and their management in organizations is still very scarce, this also applies to empirical studies. However, to avoid the uncritical acceptance of empirical results, replication studies play a crucial role in science. Therefore, this study represents a replication study of the type of empirical generalization of the paper by Durst et al. (2019) which studied knowledge risk management (KRM) in private and public organizations. Considering the KRM and performance assumptions underlying the original study and the methodology used, the results at that time are reviewed using new data from 103 Italian cooperative banks. This paper contributes to the study of risks related to knowledge and its theoretical development by providing new empirical evidence from a different cultural, geographical and institutional context. Furthermore, it emphasizes the importance of replication studies for knowledge accumulation and theory development in management science.

The spillover effect of green finance development on rural revitalization: an empirical analysis based on China's provincial panel data

With the overall victory of poverty alleviation in China, the focus of rural work has been transformed into rural revitalization. Therefore, based on the panel data of 30 provinces and cities in China spanning 2011 to 2019, this research used the entropy-TOPSIS method to calculate the weights of each index of the two rural revitalization and green finance systems. This research also constructs the spatial Dubin model to empirically analyze the direct effects and spatial spillover effects of green finance development on the level of rural revitalization. Additionally, this research calculates the weight of each indicator of rural revitalization and green finance using entropy-weighted TOPSIS. This research reveals that the current state of green finance is not conducive to increasing local rural revitalization and does not significantly affect all provinces. Further, the number of human resources can improve the local level of rural revitalization, not the entire province. These dynamics benefit the growth of local rural revitalization in the surrounding areas if employment and technology levels are developed domestically. Moreover, this research reveals that education level and air quality have a spatial crowding effect on rural revitalization. Thus, when developing rural revitalization and development policies, it is vital to prioritize the high-quality development of finance to be closely monitored by local governments at the respective levels. Furthermore, the stakeholders must pay critical attention to the connection between supply and demand and between financial institutions and agricultural enterprises in the provinces. Again, the policymakers must also increase policy preference, deepen regional economic cooperation, and improve the supply of essential rural elements to play a more significant role in green finance and support rural revitalization.

Understanding the role of green finance and innovation in achieving the sustainability paradigm: application of system GMM approach

THe central challenge facing China's sustainable development is how to strike a balance between economic growth and environmental conservation. In China's ongoing economic revolution, green finance is more important than ever. The study empirically examined how green finance and innovation affect carbon emissions using panel data from 30 Chinese provinces gathered between 2010 and 2020. The empirical analysis is undertaken to utilize a series of methods to investigate the impact of green finance on carbon emissions. The findings show that increased green finance, innovation, and industrial structure reduce carbon output. Moreover, carbon emissions increase with increasing trade openness and economic growth. In order to achieve sustainable development goals through economic and environmental sustainability, it has been discovered that green finance can foster green technology innovation and green business.

Evaluating low-carbon economic peer effects of green finance and ICT for sustainable development: a Chinese perspective

With the adoption of the United Nations Sustainable Development Goals and the Paris Climate Agreement, ADB's involvement should not be ignored. The Global Environment Facility (GEF) and ADB have teamed up to provide climate change financing for developing countries. Included in this is climate protection finance, the financing method that offers cash to assist the region in achieving ecological responsibility. Using a systematic framework, the researchers in this study examined the rationale for building a cohort result of green management in China in the new phase of the country's development. As part of a multiplicative framework, the long-term correlation between variables is quantified using the dynamic common correlated effect (D-CCE) and interactive fixed effect. According to the findings, renewable energy and green financing are good environmental indicators. Environmental degradation is negatively affected by green governance. Some people are concerned about how to dispose of ICT, yet on the other side, ICT can help cut carbon emissions with new clean technologies. Moreover, the findings show that urbanization and per capita income increase carbon emissions. The results suggest that Chinese officials need to support reducing carbon emissions through the development of ICT infrastructure, green financing, and renewable energy.

Does environmental psychology matter: role of green finance and government spending for sustainable development

Over 30% of the global GDP and 60% of the worldwide population are involved in the Belt and Road Initiative (BRI), making it one of the greatest development projects in the world. If infrastructure developments in BRI countries are successful, economic growth in those nations will increase dramatically. Using data from 2005 to 2020, this research examines the relationships between environmental psychology, green finance, and sustainable development and variables such as GDP per capita and its square, green financing, government expenditure, and human capital in 57 strategically chosen BRI economies. Economists used cutting-edge techniques that take into account multiple variables at once in their analysis, such as cross-sectional dependence, unit root testing, co-integration analysis, IFE estimation, dynamic panel data (DCCE), and generalized method of moments (system GMM). The findings indicate that green financing, government spending, and GDP per capita squared reduce emissions of carbon dioxide. In this analysis, the level of human capital is similar to GDP per capita in its beneficial effect on carbon emissions. Carbon emissions are negatively impacted by government spending, which has a minor effect on GDP per capita, green financing, and human capital. Using the results of this study, the authors offer recommendations for how a country can reduce its carbon output.

The effect of Fintech adoption on green finance and environmental performance of banking institutions during the COVID-19 pandemic: the role of green innovation

Despite the availability of substantial empirical evidence on the influence of green finance (GF) or green innovation (GI) on environmental performance (EP), only a few studies have attempted to examine the link between Fintech adoption (FA), GF, GI, and EP during the COVID-19 pandemic. Thus, by applying the structural equation modeling (SEM) approach to the data obtained from 302 banking staff in a developing economy (in this case, Bangladesh), this research work empirically examines the association between FA, GF, and EP, alongside the mediating role of GI. The empirical results indicated that FA significantly impacts GF, GI, and EP and that GF has a significant positive influence on GI and EP. Also, GI was observed to positively influence EP and partially mediate the relationship between FA, GF, and EP of banks. As one of the earliest studies to empirically investigate the relationships among these variables, these findings add to the existing scholarship on technological innovation, green finance, and environmental sustainability in the context of financial institutions in an emerging market during the pandemic. Moreover, the study demonstrates the significance of FA, GF, and GI in improving the EP of financial institutions and, ultimately, in ensuring the sustainable economic development of the country.

How green finance reduces CO2 emissions for green economic recovery: empirical evidence from E7 economies

The present study examines the effects of green finance on green economic performance index in the presence of income per capita, corporate social responsibilities, green energy, and technical innovations in emerging seven (E7) countries from 2005 to 2018. This study employed second-generation panel cointegration methodologies. The result of the cross-sectional dependency and slope heterogeneity test confirms that the panels are correlated and there exists slope heterogeneity. The results for the short- and long-run confirm the relationship between green economic performance index, green finance, GDPC, technological innovation, CSR, and green energy. In both the short- and long-run, green finance, technological innovation, and CSR decrease the carbon emissions and increase green economic growth, whereas income per capita and GDPC significantly increase the carbon emissions. The robustness check findings obtained D-H panel causality test validate the results. Reducing energy usage by adopting efficient technologies should be encouraged through green financing reforms implemented by policymakers.

Role of Environmental Sustainability, Psychological and Managerial Supports for Determining Bankers' Green Banking Usage Behavior: An Integrated Framework

Purpose

Green banking, an ethical banking concept, concentrates on environmental protection and encourages social and environmental sustainability, perceived cognitive efforts, and subjective norms ensuring ecologically responsive banking services. Consequently, although there have been considerable green banking attempts in Bangladesh, it is yet unknown how environmental sustainability, perceived cognitive effort, and subjective norms affect usage behavior. The present research aims to uncover this gap, extending the Theory of Reasoned Action (TRA) to examine the determinants of the bankers' green banking usage behavior during COVID-19.

Methods

Data were collected from 366 bankers in Bangladesh using a purposive sampling technique and analyzed with structural equation modeling (SEM) using SMART PLS 3 software.

Findings

The study found management support (0.291, t-statistics = 1.978, p 0.000), environmental sustainability (β = 0.278, t-statistics = 2.752, p < 0.001), perceived cognitive efforts (β = 0.401, t-statistics = 3.549, p < 0.000), and subjective norms (β = 0.309, t-statistics = 4.352, p < 0.000) influence bankers' attitudes. Whereas environmental sustainability (β = 0.503, t-statistics = 3.726, p < 0.001), perceived cognitive efforts (β = 0.103, t-statistics = 2.020, p < 0.002), subjective norms (β = 0.281, t-statistics = 4.607, p < 0.000), and attitudes (= 0.602, t-statistics = 5.523, p 0.015) influence bankers' green banking usage behavior. Finally, the mediating role of management supports, environmental sustainability, cognitive efforts and subjective norms on green banking usage behavior through attitudes was significant.

Contribution/Conclusion

The study contributed to existing literature validating the proposed holistic framework applying TRA and three contemporary dimensions explaining bankers' behavior toward green banking practice. Finally, the implementers should focus on green banking practices as green banking is one of the key strategies to protect the environment, assure social justice, and create economic success.

Does environmental information disclosure affect the financial performance of commercial banks? Evidence from China

The article uses hand-collected data regarding environmental information disclosure for Chinese 30 listed banks from 2009 to 2019 to investigate the effect of environmental information disclosure on banks' financial performance. Results show that the improvement in the quality of environmental information disclosure enhances the financial performance of banks, and this effect is intertemporal. In terms of the bank heterogeneity, national banks have a more significant effect of environmental information disclosure on their financial performance compared to regional banks. Furthermore, we provide evidence that the regional green development environment moderates the relationship between environmental information disclosure and banks' financial performance. The findings of our study add impetus for commercial banks to improve their environmental information disclosure.

The Spatial Heterogeneity Effect of Green Finance Development on Carbon Emissions

This paper uses the entropy method to estimate China’s green financial development from four aspects, namely, green credit, green securities, green insurance, and green investment, based on the provincial-level panel data from 2008 to 2019. The spatial Durbin model (SDM) is adopted to estimate the spatial effect of green finance on carbon emissions. We then compare the heterogeneous effect in the South and North of China. The results show that China’s green financial development can significantly reduce carbon emissions, and regional heterogeneities are obvious. In the South of China, this effect from local and adjacent regions is not significant, while on the whole, green finance can significantly reduce carbon emissions; but for Northern China, this effect is not significant; nationally, the development of green finance and carbon emissions in adjacent areas showed an inverted U-shaped relationship. China’s green financial development and carbon emissions also showed an inverted U-shaped relationship. These results suggest that the effect of green finance development on carbon emissions exhibits substantial regional heterogeneity in China. Our paper provides some concrete empirical evidence for policymakers to formulate green financial policies to achieve the double carbon goal in China.

The Impact of Financial Development and Green Finance on Regional Energy Intensity: New Evidence from 30 Chinese Provinces

Energy efficiency and energy intensity are gradually gaining attention, and it is now an important proposition to reconcile financial development, green finance, and regional energy intensity. Using Chinese mainland provincial panel data (except Tibet) from 2007 to 2019, this paper applied the spatial econometric model and the panel threshold model to investigate the effects of financial development and green finance on regional energy intensity. The paper discovered that financial development raises regional energy intensity, while green finance reduces it. Based on the panel threshold perspective, in different stages of green finance development, the effect of financial development on regional energy intensity presents an inverted U-shaped effect that first promotes and then inhibits. Meanwhile, green finance has a significant positive spatial transmission effect on regional energy intensity. Based on the spatial weight matrix reflecting regional economic relations, the increase in energy intensity has a significant negative spatial autoregressive effect on itself, and the spatial spillover effect of financial development is negligible.

Revisiting the Current Status of Green Finance and Sustainable Finance Disbursement: A Policy Insights

The paradigm of green finance is currently in the developmental stage in Bangladesh; however, it has drawn enormous interest in the global financial sector. Recently, researchers, academics, policymakers, and both the supply-side and demand-side of these funds are more serious in Green Finance and Sustainable Finance than ever before. In creating a greener economy, market players need to focus on sustainable development. All banks and NBFIs have to disburse the funded loan greater than or equal to 5% in green finance and 20% in sustainable finance according to BB policy guidelines. This paper examines the recent target accomplishment scenario of green finance and sustainable finance through banks and NBFIs in Bangladesh for the year of 2021 (four quarters). This study also observes the highest and lowest contributors in both schemes and is descriptive in nature. Data has been collected from secondary sources. According to the findings of this study, Bangladesh’s central bank has made significant accomplishments in the effort to green the country’s financial system by implementing several green policies and regulatory measures. This study also indicates the total target achievements of banks and NBFIs were 3.16% of 5% in the green finance of total loan disbursement and 9.32% of 20% in sustainable finance, which is still far behind the SDGs’ goal that must be achieved by 2030. The intention of this research is to encourage the supply and demand sides of the fund and to capitalize more on future research directions. Independent experts in this field are needed to confirm the findings of any further research.

Does Green Financing Develop a Cleaner Environment for Environmental Sustainability: Empirical Insights From Association of Southeast Asian Nations Economies

One of the most frequently used terms in climate change discussions is environmental sustainability. With economic growth and foreign direct investment as moderator factors, this study investigates the influence of green finance and financial development on environmental sustainability and growth in ASEAN economies from 2012 to 2019. ADF and Phillip-Peron (PP) unit root tests, fully modified least square (FMOLS), were employed for long-run empirical estimates. A substantial body of evidence supports the study’s findings using VECM technology. Green financing was negatively associated with CO2 emissions. However, environmental sustainability in ASEAN is favorably associated with green financing. It is also worth noting that green financing promotes environmental sustainability at the expenditure of economic growth. Financial development, foreign direct investment, R&D investment, and green technology foster economic expansion at the price of environmental sustainability. There are still many fences to green finance that need to be addressed, including pricing CO2 emissions and reforming inefficient nonrenewable fossil fuel subsidies. Local governments play a vital role in eliminating these barriers and addressing disincentives. It is recommended that policymakers push the financial sector to adopt a green finance strategy to further the goals of long-term sustainable development. Industry must integrate multiple objectives, such as inclusive growth and environmental protection and productivity, through an even broader range of legislative frameworks ideal for decoupling growth from social and ecological unsustainability, at the heart of the green manufacturing process.

The Role of Resource Consumption Accounting in Achieving Competitive Prices and Sustainable Profitability

This study examines the roles of resource consumption accounting and competitive prices in attaining sustainable profitability. The objectives were (1) to determine whether the adoption of resource consumption accounting practices yields significant improvements in competitive strategies in a highly competitive situation where activity-based costing has proved to be insignificant, and (2) to ascertain if the positive relationship between competitive pricing and sustainable profitability is increased by the extent to which resource consumption accounting exerts pressure for sustainability profitability. A PLS-SEM procedure was applied in analysing 129 of the top 30 performing companies’ structured questionnaire responses drawn from five industries in Kurdistan from 2021. The empirical results demonstrated that competitive pricing models involving resource consumption accounting systems provide superior price forecasting, error reduction and profit maximisation capabilities than existing energy models. The study’s outcomes highlight that the extent to which resource consumption accounting exerts pressure on sustainability profitability significantly increases the positive relationship between competitive pricing and sustainable profitability. The results of this study advance construct and item development involving competitive pricing and resource consumption accounting while testing relationships to uncover the moderating role of resource consumption accounting in profit maximisation. Thus, energy and non-energy industrial companies must rely on resource consumption accounting to set competitive prices and enhance and sustain their profitability by considering the overlooked energy pricing stochastic parameters and errors amid rising energy shortages and costs.

The Effect of Green Banking Practices on Banks’ Environmental Performance and Green Financing: An Empirical Study

Every sector of the global economy is faced with environmental problems and their resulting consequences to their day-to-day operations. Due to the rising threat of global climate change, the green banking (GB) concept has been given significant attention in recent green finance literature. Therefore, the main purpose of this study was to identify the impact of GB practices on banks’ environmental performance and sources of green financing of private commercial banks (PCBs) in Bangladesh. Using a survey method, the primary data were obtained from a cross-sectional sample of 322 banking employees of PCBs in Bangladesh. In order to identify the key relationships existing between the study variables, structural equation modelling (SEM) approach was employed. The empirical findings indicated that banks’ employees, daily-operations, and policy-related GB practices have significant positive effects on green financing, contrary to banks’ customer-related GB practice, which was not statistically significant. Additionally, banks’ green project financing exhibited a strong and positive influence on banks’ environmental performance. Moreover, banks’ daily operation and policy-related practices of GB were observed to have significant impacts on banks’ environmental performances, in contrast to banks’ employee and customer-related GB practices. Therefore, major policy implications and directions for future research in the concerned area are discussed.

Do Green Banking Activities Improve the Banks’ Environmental Performance? The Mediating Effect of Green Financing

The main purpose of this study is to identify the impact of green banking activities on green financing and banks’ environmental performance. It also identifies the mediating effect of green financing on the relationship between green banking activities and environmental performance of private commercial banks (PCBs) in Bangladesh. Besides, this study also examines the major challenges and benefits of green banking development in an emerging economy like Bangladesh. The convenience sampling technique was used to collect primary data from bankers of PCBs in Bangladesh, and a final sample size of 352 was recorded. To assess the relationship among the study variables, the Structural Equation Modelling (SEM) approach was employed. The empirical results revealed that green banking activities exhibit a significantly positive effect on banks’ environmental performance and sources of green financing, and that sources of green financing significantly influence banks’ environmental performance. Additionally, it was observed that green financing mediates the association between green banking activities and banks’ environmental performance. Furthermore, the study identified customers’ insufficient awareness towards green banking, high investment costs, technical obstacles, lack of capable and competent staff in appraising green credits/loans, and difficulties and complexity in assessing green projects as major challenges affecting the development of green banking in Bangladesh. Moreover, the study also discovered that increasing banks’ competitiveness, reducing long-term costs and expenses, providing online banking facilities, improving customers’ goodwill, and reducing carbon footprints are the key benefits of green banking development, as it helps in the achievement of the sustainable economic development of the country. Therefore, major theoretical and managerial policy implications are further discussed with study limitations and future research directions.