An analysis of green practices for sustainability in the Indonesian banking industry

Abstract

The demand for sustainability reports has increased in recent years. A sustainability report is an indicator of the company's sustainability, in which there are three elements: the environment. This research aims to analyze the role of Green Banking practices in Indonesian banking toward banking sustainability. This research examines 12 banks in Indonesia from 2015 to 2022 by using a sustainability report as a reference to the Global Reporting Initiative (GRI) standard. Data were analyzed using the PLS-SEM approach with the help of WarpPls software. The independent variable in this research is Green Practice, measured using 12 measurements, while the sustainability report index is the dependent variable. This study shows that the sustainability reporting index of banking in the environmental field is the lowest compared to the economic and social indexes. However, the sustainability report index is significantly influenced by applying green practices. This research also shows that the green banking indicators most fulfilled are adopting policies and technologies to reduce environmental damage.