“Environmental Performance Reporting in Commercial Banks of India: Exploring Association with Financial Performance”
Parul Munjal1, Deergha Sharma2

1CS Parul Munjal*, Doctoral Research Scholar, School of Management, The NorthCap University, Gurugram, Haryana, India.
2Dr. Deergha Sharma, Assistant Professor, School of Management, The NorthCap University, Gurugram, Haryana, India.

Manuscript received on September 17, 2019. | Revised Manuscript received on 24 September, 2019. | Manuscript published on October 10, 2019. | PP: 3590-3595 | Volume-8 Issue-12, October 2019. | Retrieval Number: L39061081219/2019©BEIESP | DOI: 10.35940/ijitee.L3906.1081219
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Abstract: Environmental issues such as global warming and subsequent climate changes have stimulated the need for environmental performance reporting by organizations. Extant literature highlights that adoption of environmental practices is expected to influence financial performance of organizations. Despite extensive literature available on relationship between environmental performance and financial performance, results still remain indecisive. This research attempts to investigate environmental performance reporting in the context of commercial banks operating in India and compare the relationship between environmental performance and financial performance on a sample of 21 public and 20 private sector banks for a period of five years (2013-14 to 2017-18) using content analysis and linear regression. Secondary data was collected from annual reports, corporate social responsibility reports, business responsibility reports and sustainability reports of respective banks. Results obtained evince no considerable association amid environmental performance and financial performance of public sector banks functioning in India. Correspondingly, no considerable association was found amid environmental performance and return on equity of private sector banks. Conversely, positive significant relationship was observed between environmental performance and return on assets of private sector banks. Research provides an insight to banking sector to incorporate environmental practices in core business operations to improve profitability.
Keywords: Environmental Performance; Financial Performance; Environmental Performance Reporting; Commercial Banks; Content Analysis
Scope of the Article: Environmental Engineering