Safeguarding the environment with green banking practices
MOTHER Earth is facing lot of environmental concerns. These problems arise from climate change and massive pollution which, in many ways, are bringing adverse effects on biodiversity, forestry, agriculture, water resources, land and human health.
These environmental issues have gained greater attention from several stakeholders to protect the Earth with sustainable development.
Environmentalists agree that we need to stop man-made problems and adopt eco-friendly policies with foresight to avoid disasters.
Top environmental concerns like air pollution, water pollution, soil pollution, global warming, deforestation, increase in carbon footprint, public health issues, loss of biodiversity, depletion of the ozone layer and many others are generated from time to time, putting pressure on industries and services, including financial institutions, to implement“green” initiatives.
They need to take responsibility for the Earth by funding sustainable green developments.
In these circumstances, banks can play a major role in sustainable economic growth and environmental protection to prove themselves as a socially responsible institution.
In Malaysia, air and water pollution are expected to become worse as the result of massive economic growth and rapid urbanisation.
Air pollution will increase as the transport and industrial sectors burn more fossil fuel. The increasing number of vehicles is the main cause of poor air quality, particularly in major cities like Kuala Lumpur.
To resolve this, the government has supported the national Go Green initiative since 2013, which aims to conserve our natural resources.
Green is synonymous with eco-consciousness in the world. Nowadays, the green or environmental movement has become a strategic approach for healthier marketing demands in modern business areas.
In 2014, the Indian Banks Association defined “Green Banking” akin to a normal bank, but also considers social and environmental factors to protect the Earth and conserve natural resources.
Through this, banks have an additional agenda towards taking care of the Earth’s environment. It is also known as ethical or sustainable banking.
Green banking is not only a corporate social responsibility programme of financial institutions, but also promotes eco-friendly or environmentfriendly banking to achieve sustainable green development in communities worldwide.
Through green banking practices, the environment maybe safeguarded by taking sustainable green development policies into consideration while achieving economic growth for the community.
ASSOCIATE PROFESSOR DR SAUNAH ZAINON
Deputy Rector of Research, Industrial Linkages; Alumni UiTM, Johor