An Empirical Study On The Relationship Between Bank’s Environmental Performance And Financial Performance Through Green Loan

Abstract

The ecological degradation have drawn attention towards green practices, which are feasible if a sustainable financial system is implemented in its true spirit globally.This study examine the relationship between environmental and financial performance of highly polluted industry finance through a green loan. The concept of the Environment Performance Evaluation System (EPES) as an internal management tool is used for information about  an organization’s environmental system  performance and its achievement towards environmental policy. Some studies show a positive relationship, which means Environmental Performance (EP) directly impacts Financial Performance (FP), whereas some studies show no association. Descriptive statistics, Correlation, and regression analysis are used to establish a relationship between environment and financial performance. The result showed no  correlation between environmental and financial performance for 2019, but there is a positive correlation in 2020. This study offer to stakeholders a meaningful insight for decision-making through green finance toward Organizational Environmental Sustainability (OES).