GREEN BANKING IN INDIA: OPPORTUNITIES AND CHALLENGES
By
Dr.R.H.PAVITHRA
Assistant Professor
DEPARTMENT OF Studies in Economics
Karnataka State Open University
Mukthagangotri, Mysore
Karnataka
ABSTRACT
Green banking is different from traditional banking, as green banking focus on promoting environment friendly banking. Green banking is also known as ethical banking . In the environment friendly society “Go Green” mantra has become relevant in each and every aspect of business. There is a wave of change with all business activities to not only focus on profit but also on people and planet. Due to environment consciousness and awareness businesses can no longer run after profits only. There is a move towards green economy and in every sphere
Ethical banks have started with the aim of protecting the environment. These banks are like a normal bank which aims to protect the environment and it is controlled by same authorities as what a traditional bank do. Green banking 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 called as an ethical bank or a sustainable bank. They are controlled by the same authorities but with an additional agenda toward taking care of the Earth's environment / habitats / resources. For banking professionals green banking involves the tenets of sustainability, ethical lending, conservation and energy efficiency. There are many differences compared with normal banking, Green Banks give more weight to environmental factors, their aim is to provide good environmental and social business practice, they check all the factors before lending a loan, whether the project is environmental friendly and has any implications in the future, you will awarded a loan only when you follow all the environmental safety standards. Green banking can benefit the environment either by reducing the carbon footprint of consumers or banks. Either a bank or a consumer can conserve paper and benefit the environment. Ideally, a green banking initiative will involve
Banks are required to include their green aspect in the lending principle. Every step taken today will mean a better global environment in future. So a policy measure to promote Green Banking is needed in India. Indian banks are running behind time in adoption of this green phenomenon. Serious steps are required to be taken in this regard.
Jha and Bhome (2013) conduct a similar survey as stated above to check and thereby create consumer awareness on Green Banking. Conducting interviews and using specially structured questionnaires for survey they state certain steps needed in Green Banking. Online Banking, Green Checking Accounts (ATM, Special Touch Screens), Green loans (low rate to those who wish to buy solar equipments) for supporting environment friendly residential projects, power saving equipments, Green Credit Cards, Paper Saving Mobile Banking are among few steps suggested by them. Green Banking will ensure organization’s move towards
John Dallas Costa, Ethical Imperative wrote: "Not long ago the concerns of ecologists were as irrelevant to business planners as those of ethicists are today. “Green” has gone from being a disparagement to becoming a badge that no smart company would risk being without. Ethics are similarly en route to becoming a strategic imperative."
It will be advantageous for the company if they can project themselves as responsible corporate citizen and an environment friendly company. Social enrichment schemes, recycling schemes and educational funds can be initiated to cater to this cause and long term goal.
Shearman, S., 2013. Consumers getting more environmentally conscious. PRWeek, [online] Available at: [Accessed 14 May 2014]
It would be interesting to learn about two Indian Unicorns who are in the greens. Mu Sigma, an analytics service provider is posting robust business growth with a revenue of INR 810 cr and a PAT of INR 463 cr (reported March 31, 2016 – Tofler Data). While InMobi, a global mobile advertising platform, which competes with the likes of Google and Facebook, posted profits for the first time in the Q4’16. InMobi’s decision to drop the non-core businesses buttresses the point of focusing on the core to create sustainable business with strong fundamentals rather than just chasing the Unicorn
Today in the corporate world various strategies are applied to successfully run and execute transactions. In the recent years, the subject matter of Corporate Social Responsibility has escalated. “Corporate social responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders” (http://lexicon.ft.com/Term?term=corporate-social-responsibility--(CSR). Communities are demanding that corporations take social responsibility for their actions, and elucidate the process of disposing waste in an environmentally manner to the people. Numerous businesses have initiated Corporate Social Responsibility approach in order to gain benefits, which will allow
Companies all over the nation are trying to become an environmental friendly during their day-today operations. Going green has become a significant trend within the United States. When a company goes green, the business will more than likely benefit from their actions. Going green makes perfect business sense although it can be costly (Crootof, 2014). Global warming damages a business because pollution can affect the price of product and services. A company that has followed the green transformation is AmerenUE's real power company. AmerenUE has officially been cleared by the Center for Resource Solution (CRS) to be green-e certified (“AmerenUE's Pure Power,” 2007). Ethically, a company should run a good, clean, and efficient business. Another company that displays great “green” attributes is New Belgium Brewery. New Belgium brewery focuses on cost effective ways of operating that cause no hard to the environment (Ferrell & Hartline, 2014).
At the end of the day, if companies take care of the environment, it will help the global economy’s sustainability. Companies can further improve by taking responsibility for the economic impact in affected areas. While it is not a tangible benefit, many consumers prefer companies that take on responsible roles in the economy and the environment. Companies need to take
To help further explain these misleading claims, a well recognized company by the media is called Terrachoice. “The Terrachoice Environment Marketing Consulting practice converts knowledge of markets, science and marketing into winning, client-centered solutions to help sustainability leaders deliver results” (“The "six sins," 2007). Terrachoice has conducted a study of the “Environmental Claims in North American Consumer Markets” and found shocking results that made them want to give warning to potential consumers about the ‘six sins of greenwashing. The Terrachoice Company was designed to improve the communication between the purchasers and consumers, helping to enhance, strengthen, and prove market relationship.
The most recent reports of corporate social responsibility (CSR) of Well Fargo, is an example of how a massive bank can run an extensive sustainability program. One way in which Wells Fargo is showing its sustainability credentials is by becoming one of the more aggressive and creative lenders within the financial area. Times when banks were often hesitant to lend money to anyone, Wells Fargo claims to have invested more than US$37 billion in loans and investments within the clean technology and green building sectors, since 2012 — already crossing the company’s goal of US$30 billion in such investments by
In conclusion, going green in the workplace is catchy new trend. Choosing to go verdant can be a grueling task and one that is confronted with some unique pros and cons. Although making green choices come at a slightly higher price, the rewards that are earned more than cover these costs. When a company chooses wisely going green can not only help the environment, and reduce the carbon foot-print the company makes but it can also prove to be a very smart business decision that can be financially gratifying.
The more experience you have putting these tips into practice, the more they will become instinct. And by making informed decisions and ensuring that the product’s claims are accurate, you can feel good about the choices you make and their positive impact on the environment. If more greenwashing means that marketers are increasingly responding to the demand for sustainable products, this could be a positive trend. If left unchecked, greenwashing creates significant risks. Consumers will give up on marketers and manufacturers, and give up on the hope that their spending might be put to good use. Recent developments suggest companies should be prepared for the new wave of measures. Greenwashing has become a buzz word for consumers and the media. Unfortunately, the rules are not always clear when it comes to responsible environmental marketing.
Fourthly, Ecover should offer more education and information with long-term objectives to facilitate and promote new values and behaviours. Finally, Ecover should encourage environmentalists to recommend its products. 9.Appendix Appendix 1:. Survey of consumer attitudes. Australia Canada Germany Italy Japan Holland Spain Switzerland Pay 10-15% more for green products 69 72 68 79 42 87 85 80.
Green technology is the technology whose main aim is reduce the impact of human activities on the environment. In other words the target of green technology is to consume less natural resources, reduce the emission, produce goods with energy efficiency, take care of health and safety issues and reuse and recycle the goods after their usage.
Conserving environment has become one of the most important issues of 21st century. There has been a significant rise in the establishment of environmental protection NPOs around the world, these Non-profit organization not only protect environment but also raise awareness of declining climate changes among people. In this essay I will discuss the efforts of NPOs in the environmental protection and the difficulties these organization encounter during their work.
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