Abstract
In the development of human society, the production and consumption of goods and services of numerous industries have significantly influenced the environment of both developing and developed countries. As a main player in the financial sector, banks play a vital role in assisting firms and funding projects and consequently have a substantial impact on their clients’ operations and on the environment. Although banks are not directly responsible for environmental degradation, as leaders in economic development, banks are showing an interest in incorporating environmental issues to avert financial and reputational losses. By considering this issue in the current decade, most countries around the world have been developing green finance policies towards sustainable development. The main goal of this study is to present the progress that Australia’s banking sector has made in green finance activities towards sustainable banking. Australia’s financial sector, particularly its banks, play a crucial role in ‘green transformation’ by developing favourable initiatives and policies. Data show that the trend of sustainability is rising in Australia due to the green investment performance of Australian banks. This performance includes diverse green finance products and services (such as green loans, the issuance of green or climate bonds, social loans and sustainability-linked loans) and banks’ in-house operations. The major problem of sustainability is the lack of good practices and a standardised approach. Finally, the development of innovative financial products continues to raise capital for green projects and enhance sustainability.
View more >>