Assessing the Impact of Social and Environmental Sustainability on Financial Performance: An Empirical Study on Private Sector Banks in India

Abstract

The study's goal was to determine how financial performance is affected by social and environmental sustainability. In this work, a valid technique was employed to examine existing theories, resulting in quantitative analysis. Carbon emissions and climate action, environmental management practice and policies, and green economics and investment were the determinants of independent variables for environmental sustainability, while gender diversity and welfare Innovation in green technology and corporate social responsibility were the determinants of social sustainability. The study's dependent variables include environmental sustainability, social sustainability, and financial performance. 393 bank employees make up the sample, which was chosen using a basic random sampling technique. To gather the primary data, a systematic questionnaire was also given out. To investigate the hypothesis, regression analysis and correlation were employed. Results indicated that Social and Environmental sustainability have a statistically noteworthy effect on Financial performance at 0.05 significant level, while correlation analysis indicated a constructive relationship between financial performance and social and environmental sustainability. The enhancement of the efficacy of organizations is essential to mitigate adverse impacts on the environment and secure a viable future for them. In particular, the banking sector is essential to this effort since it fosters the development of a strong, prosperous low-carbon economy. Furthermore, financial organizations should use non-financial facts while making decisions. greater account when deciding which loans and investments to make in order to enhance their performance and promote sustainable corporate growth.