SUSTAINABLE BANKING PRACTICES AND ENVIRONMENTAL PERFORMANCE: INSIGHTS FROM SRI LANKA

Abstract

In recent decades, global awareness of environmental issues has surged, drawing attention from governments, policymakers, advocacy groups, businesses, and the public worldwide. These concerns encompass a wide range of issues, including environmental degradation, climate change, ethical considerations, social responsibility, marginalization, and the emergence of influential activist groups. This growing societal focus on environmental performance has transformed environmental protection from a concern primarily for households and communities into an imperative for businesses. Environmental responsibility is now seen as adding value to organizations, attracting investors and shareholders who take pride in supporting environmentally responsible activities. The industrial development of the past has significantly contributed to global environmental challenges such as global warming, ozone depletion, air and water pollution, soil erosion, and deforestation. Recognizing the urgency of these global environmental problems, organizations are increasingly prioritizing environmental performance alongside their social and economic goals. International and local environmental standards, environmental regulatory bodies, and environmentally conscious consumers exert pressure on organizations to enhance their environmental performance. Compliance with strict environmental norms and obtaining environmental protection licenses (EPL) have become mandatory for industries seeking to operate in today's environmentally conscious landscape.