Assessing Environmental Performance in the Banking Industry: Moving Towards Green Banking

Abstract

Global concerns about climate change have increasingly drawn the attention of the banking industry to environmental performance. In this context, the concept of Green Banking has emerged as a key strategy for mitigating negative environmental impacts and promoting investment in sustainable development projects. Given its central role in achieving environmental sustainability, green banking has become one of the main priorities in the policies of financial institutions. This study aims to evaluate the environmental performance of banks in the context of sustainable development. The research employs an analytical-descriptive method based on content analysis, combined with semi-structured interviews with 25 experts in the fields of economics, banking, and environmental science. Additionally, Expert Choice 11 software was used to support the analysis. The study focuses on both domestic banks (Parsian Bank, Tejarat Bank, Mellat Bank, Cooperatives Development Bank, and especially Bank Melli Iran) and international banks (Triodos Bank, NatWest, BNP Paribas, and GLS Bank). The findings indicate that by adopting green strategies and advancing sustainable financial services, Bank Melli can not only enhance its environmental performance but also attract new customers and boost its brand reputation. This requires the development of systems for assessing the risk of environmental project performance, allocating resources to green projects, and designing and offering green financial products. Furthermore, collaboration with other institutions and non-governmental organizations can significantly contribute to the promotion of green banking and foster innovation within the industry. Ultimately, this research offers recommendations to strengthen Bank Melli's role in environmental preservation and advance sustainable development goals.