OIDA International Journal of Sustainable Development
Open-access peer-reviewed journal
https://doi.org/10.64211/oidaijsd190301
Green Banking and Sustainable Development: A Systematic Review of Global Practices and Policy Trends
Smitha S 1, Ramesh Chandrahasa 2
1, 2 Institute of Management Studies, Davangere University, Davangere, Karnataka, India.
2 Corresponding authour: drrcmay@gmail.com
Volume 19, Issue 03, Pg. 11-18, 2026
Abstract: This paper systematically reviews global green banking practices and their role in promoting sustainable development. Using conceptual lenses such as the Triple Bottom Line, Stakeholder Theory, and Institutional Theory, the review explores how banks integrate environmental, social, and governance (ESG) criteria into operations. Case examples from developed (EU, USA, UK) and emerging economies (India, China, Brazil) highlight regulatory frameworks, policy trends, and institutional initiatives such as green bonds, climate risk assessment, and ESG disclosures. The study outlines key benefits including brand trust, climate risk mitigation, and access to green capital. It also discusses challenges such as greenwashing, lack of standardization, and limited technical capacity. Future directions recommend global taxonomies, capacity-building initiatives, fintech integration, and regulatory incentives. The review underscores the strategic importance of green banking in advancing the global sustainability agenda.
Keywords: Green banking, sustainable development, green finance, ESG, SDGs, policy review, environmental sustainability, sustainable finance
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