DIP: 18.02.018/20240903 
DOI: 10.25215/2455/0903018 
Abstract
The accelerating threat of climate change and environmental degradation has prompted significant transformations across industries, including the financial sector. This research explores the emergence and implementation of green banking as a strategy to embed sustainability into financial services. Green banking encompasses environmentally responsible practices adopted by banks to reduce their ecological footprint, support sustainable economic activities, and align with broader environmental, social, and governance (ESG) goals. Using a mixed-methods approach, this study examines global trends, regulatory frameworks, and bank-led initiatives promoting green finance. Primary data was collected through interviews with banking professionals and surveys administered to customers in both urban and semi-urban regions. Secondary data sources include sustainability reports, central bank guidelines, and ESG performance indices. The findings reveal that institutions adopting green banking strategies tend to experience improved brand value, regulatory goodwill, and long-term financial stability, while also enabling customers to make more sustainable choices. Moreover, the study identifies key challenges such as limited awareness, lack of standardized green taxonomies, and the perceived trade-off between sustainability and short-term profitability. It further highlights successful case studies from regions including the European Union, India, and Southeast Asia, where green lending, paperless banking, renewable energy financing, and carbon credit integration have shown measurable environmental and financial benefits. The paper concludes that while green banking is still evolving, it holds transformative potential for redefining the role of banks in addressing climate change and promoting sustainable development. Strategic alignment, policy support, and technological integration are critical for mainstreaming these practices. The research underscores the need for banks to transition from passive financiers to active agents of sustainability, reshaping financial services to serve both economic and environmental goals.
The scholar, Dr Naresh G. Maurya, is the awardee of a research project funded by the Centre of Research, Indian Institute of Teacher Education under the Namo Matrubhumi Mission Shardam Projects. This paper is largely an outcome of the research project sponsored by the Indian Institute of Teacher Education (IITE). However, the responsibility for the facts stated, opinions expressed, and the conclusions drawn is entirely that of the author. 
The author(s) declared no conflict of interest. 
ISSN 2455-670X