Green Finance: Reduce, Reuse & Recycle Strategy for the Environment

Abstract

Green finance has emerged as a pivotal strategy in addressing environmental challenges and promoting sustainability in the banking sector. This study explores the role of green financial forecasting with a focus on the ‘Reduce, Reuse, and Recycle’ (RRR) strategy, specifically emphasizing the Reduce component. Utilizing a correlation matrix and regression analysis, the research examines the relationship between green banking initiatives and key variables like the use of ATMs and checking balances, to assess the impact of reducing environmental footprints on financial outcomes. Findings reveal a strong positive correlation between green banking practices and financial sustainability, highlighting the importance of integrating eco-friendly strategies within banking operations. Additionally, the study introduces the FAIR Model—a comprehensive framework for implementing sustainable banking practices—demonstrating its applicability in fostering green banking in India. The paper also outlines avenues for further development of green banks in India, emphasizing the need for innovation in infrastructure, energy efficiency, and the role of green financial products. The insights drawn from this research provide valuable guidance for policymakers, financial institutions, and investors aiming to align financial strategies with environmental sustainability.