EARTH is currently facing a host of environmental concerns. These problems arise from climate change, global warming and pollution — all of which have a significant impact on biodiversity, forestry, agriculture, water resources, and human health.
These environmental issues are also global; environmentalists, nature lovers, and the general public agree that we need to put a stop to such problems which are mainly man-made.
We need an eco-friendly policy to help us deal with such adverse effects which put pressure on industries and services.
Green initiatives are seriously needed to promote sustainable development and environmental protection.
In Malaysia, air and water pollution are expected to become more challenging as a result of rapid economic growth over the past two decades.
Rapid urbanisation and industrial growth have contributed to the increase in air pollution. The sources of air pollution are from the transportation and industrial sectors through the burning of fossil fuels.
The growing number of vehicles remains the main cause of the air quality deterioration, particularly in cities.
Therefore, the quality of air and water directly affects the socio-economic condition of the society.
Banks, as financial institutions can play a role in promoting green initiatives and sustainable economic growth through “green banking” practices.
The concept is a strategic approach to healthier marketing demands in modern business areas.
Green banking is any form of banking that benefits the environment. According to the Indian Banks Association (IBA, 2014): “Green Bank is like a normal bank, which considers all the social and environmental/ecological factors with an aim to protect the environment and conserve natural resources”.
It is also known as the “ethical” or “sustainable” bank. Its purpose is to perform “banking activities but with an additional plan towards taking care of earth’s ecology, environment, and natural resources including biodiversity”.
Green banking is gaining traction — it is making technological and operational improvements by changing clients’ habits in banking. Paperless banking, for example, reduces cost, and helps in environmental sustainability — it reduces the use of paper, power and energy.
Green banking is about making the society habitable and stopping environmental degradation.
Green banking is a smart and proactive way of thinking with a vision about future sustainability.
ASSOCIATE PROFESSOR DR SAUNAH ZAINON
Deputy rector of research, industrial linkages & alumni, UiTM Johor