Green banking — a path to financial sustainability

Green banking represents a transformative shift in the financial sector, where banks realign their investment strategies to prioritise sustainable technologies and environmentally friendly initiatives. These financial institutions are at the forefront of sustainable banking, actively promoting clean energy and seeking innovative solutions to combat climate change. With the Air Quality Index (AQI) in certain regions of Pakistan surpassing hazardous levels of 1,000+ this year, questions about governmental and institutional responsibility have intensified. Amidst this discourse, one critical industry that has received insufficient attention is the banking sector. As a pivotal contributor to the financial sector, accounting for approximately 55 per cent of Pakistan’s GDP, the banking industry wields significant influence. The prominent status of the banking industry raises critical questions about its role in the current crisis: What actions has this key player taken to address the dual challenges of persistent smog and dangerously high AQI?