DOES GREEN FINANCE PROMOTE ENVIRONMENT PERFORMANCE? EVIDENCE FROM PAKISTAN

Abstract

The current research presents a mediating concept to observe employee green behavior, green finance, employee innovation, and environmental performance in the banking industry. Also, explore employee innovation mediated impact between GF, EGB, and EP. Survey-based Data were collected from 375 samples of employees from the private banking sector in Lahore. Using path analysis through SPSS-AMOS, it was discovered that EGB significantly impacted GI and EP. GF positively impacted GI and GP. The results also point out that EGB fully mediates among GF, EP, and EGB, EP. Findings recommend promoting employee green behavior and providing green finance opportunities, which can increase employee innovation, positively impacting the banking industry's environmental performance. This research highlights the importance of considering employee behaviors, financial support, and innovation in creating a sustainable and environmentally friendly banking sector. The study concludes with practical and theoretical contributions to the banking industry.