The Impact of Environmental Management Strategies on Firm's Performance in Banking Industry: A Case Study of three Selected Banks (United Bank for Africa, Heritage Bank and Lotus Bank)
Keywords:Environmental, Management, Strategies, financing, Risk, Firm Performance
The objective of this research is to examine the impact of Environmental Management Strategies (EMS) on the performance of Nigerian banks. The study focuses on three key components of EMS, namely green financing initiatives, environmental risk management practises, and sustainable product offers. The study employed purposive sampling to gather data from high-ranking workers of three well-established institutions, namely United Bank for Africa, Heritage Bank, and Lotus Bank. The study collected both quantitative and qualitative data from study participants. The quantitative data was analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) within the SMARTPLS3 software. On the other hand, thematic analysis was used to analyse the qualitative data. Finally, the study used triangulation method to draw comprehensive conclusions. The results indicate that the implementation of green financing initiatives and environmental risk management practises have a noteworthy and favourable impact on the overall performance of banks operating in Nigeria. The inclusion of sustainable product offers has been shown to have a notable and favourable effect on performance, underscoring the strategic significance of aligning financial products with sustainability objectives. The aforementioned findings highlight the significant importance of EMS in augmenting financial performance, protecting reputations, and establishing Nigerian banks as frontrunners in the realm of sustainable banking practises. The study recommends that policy makers should develop or revise regulatory frameworks to incentivize banks to integrate effective environmental management strategies into their operations, aligning with international sustainability standards.
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