Sustainable Finance: Nurturing Your Savings and the Planet
Abstract
This study investigates the dynamics of sustainable finance practices, environmental awareness, and financial outcomes among customers of Bank Artha Graha. Through quantitative analysis employing structural equation modeling, the research examines the direct and indirect effects of Sustainable Financial Practices and Environmental Awareness on Sustainable Investment Returns and Savings Growth. Findings reveal a significant direct influence of Sustainable Financial Practices on both Sustainable Investment Returns and Savings Growth, emphasizing the importance of integrating environmental, social, and governance criteria into financial products and services. While Environmental Awareness demonstrates a marginal direct effect on Savings Growth, it does not significantly impact Sustainable Investment Returns. However, the analysis indicates that Sustainable Financial Practices indirectly influence Savings Growth through their impact on Sustainable Investment Returns. These results underscore the critical role of sustainable finance principles in promoting financial growth aligned with environmental responsibility, offering valuable insights for stakeholders in the banking industry and beyond.
References
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[2] D. Meyers, C. F. Alliance, J. Bohorquez, and A. Sciences, “Conservation+Finance+Framework+March+2020,” no. March, 2020.
[3] D. Loorbach, D. Schoenmaker, and W. Schramade, “Finance in Transition: Principles for a Positive Finance Future,” RSM Ser. Posit. Chang., pp. 1–100, 2020, [Online]. Available: https://www.rsm.nl/fileadmin/Corporate/About_RSM/Positive_Change/2020_Finance_in_Transition.pdf
[4] I. Rimanoczy, “The Sustainability Mindset Principles,” Sustain. Mindset Princ., 2020, doi: 10.4324/9781003095637.
[5] E. Benz-Saliasi, Climate disclosure and climate risk for Asian companies. 2020. doi: 10.1007/978-3-030-35411-4_2.
[6] L. C. BRESSER-PEREIRA and Y. NAKANO, “Crescimento Econômico com Poupança Externa?,” Brazilian J. Polit. Econ., vol. 23, no. 2, pp. 163–188, 2023, doi: 10.1590/0101-31572004-0699.
[7] S. BARIŞ, “D8 Ülkelerinde Tasarruflar Ekonomik Büyümenin Belirleyicisi mi?,” Celal Bayar Üniversitesi Sos. Bilim. Derg., vol. 18, no. 2, pp. 403–414, 2020, doi: 10.18026/cbayarsos.753927.
[8] R. M. Elakkad and A. M. Hussein, “The Effect of Official Development Assistance on Domestic Savings and Economic Growth in Egypt,” Int. J. Econ. Financ., vol. 13, no. 12, p. 33, 2021, doi: 10.5539/ijef.v13n12p33.
[9] K. Bohini, C. H. Yaganti, and M. P. Thomas, “India’s Demographic Dividend: The Millennials’ Savings Conundrum,” Millenn. Asia, vol. 13, no. 1, pp. 108–141, 2022, doi: 10.1177/0976399620958262.
[10] V. KAYMAZ and F. ÖZGÜN, “Are the Gross Savings Volumes and Determinants of the Mint Countries,” Uluslararası İktisadi ve İdari İncelemeler Derg., no. 33, pp. 231–244, 2021, doi: 10.18092/ulikidince.876891.
[11] D. Koning, “When savings are not counted as savings : The missed opportunity to use home equity to stimulate the U . S . economy,” no. 111827, 2022.
[12] E. Board, Academic Studies on Social and Economic Issues.
[13] S. R. Baker, E. Benmelech, Z. Yang, and Q. Z. Shanghai, “The Determinants of The Chinese Household Savings Rate,” no. March, pp. 1–60, 2023.
[14] A. K. Hinze and F. Sump, “Corporate social responsibility and financial analysts: a review of the literature,” Sustain. Accounting, Manag. Policy J., vol. 10, no. 1, pp. 183–207, 2019, doi: 10.1108/SAMPJ-05-2017-0043.
[15] M. Najjar, I. H. Alsurakji, A. El-Qanni, and A. I. Nour, “The role of blockchain technology in the integration of sustainability practices across multi-tier supply networks: implications and potential complexities,” J. Sustain. Financ. Invest., vol. 13, no. 1, pp. 744–762, 2023, doi: 10.1080/20430795.2022.2030663.
[16] F. Bartolacci, A. Caputo, and M. Soverchia, “Sustainability and financial performance of small and medium sized enterprises: A bibliometric and systematic literature review,” Bus. Strateg. Environ., vol. 29, no. 3, pp. 1297–1309, 2020, doi: 10.1002/bse.2434.
[17] H. Ullah, Z. Wang, M. Mohsin, W. Jiang, and H. Abbas, “Multidimensional perspective of green financial innovation between green intellectual capital on sustainable business: the case of Pakistan,” Environ. Sci. Pollut. Res., vol. 29, no. 4, pp. 5552–5568, 2022, doi: 10.1007/s11356-021-15919-7.
[18] Y. Feng, R. Akram, V. M. Hieu, and N. H. Tien, “The impact of corporate social responsibility on the sustainable financial performance of Italian firms: mediating role of firm reputation,” Econ. Res. Istraz. , vol. 35, no. 1, pp. 4740–4758, 2022, doi: 10.1080/1331677X.2021.2017318.
[19] E. Mittal and P. Kaur, “Green HRM, green innovation and environmental performance: The moderating role of servant leadership,” Hum. Syst. Manag., vol. 42, no. 1, pp. 27–40, 2023, doi: 10.3233/HSM-220066.
[20] A. Szeberenyi, R. Lukacs, and A. Papp-Vary, “Examining Environmental Awareness of University Students,” Eng. Rural Dev., vol. 21, pp. 604–611, 2022, doi: 10.22616/ERDev.2022.21.TF198.
[21] J. Heydari, K. Govindan, and Z. Basiri, “Balancing price and green quality in presence of consumer environmental awareness: a green supply chain coordination approach,” Int. J. Prod. Res., pp. 1–19, 2020, doi: 10.1080/00207543.2020.1771457.
[22] Y. Tan and Z. Zhu, “The effect of ESG rating events on corporate green innovation in China: The mediating role of financial constraints and managers’ environmental awareness,” Technol. Soc., vol. 68, p. 101906, 2022, doi: 10.1016/j.techsoc.2022.101906.
[23] A. Galli et al., “Assessing the Ecological Footprint and biocapacity of Portuguese cities: Critical results for environmental awareness and local management,” Cities, vol. 96, no. July 2019, p. 102442, 2020, doi: 10.1016/j.cities.2019.102442.
[24] D. Avramov, S. Cheng, A. Lioui, and A. Tarelli, “Sustainable investing with ESG rating uncertainty,” J. financ. econ., vol. 145, no. 2, pp. 642–664, 2022, doi: 10.1016/j.jfineco.2021.09.009.
[25] L. F. Pastor Robert Stambaugh Lucian A Taylor et al., “Nber Working Paper Series Sustainable Investing In Equilibrium Sustainable Investing in Equilibrium,” 2019, [Online]. Available: http://www.nber.org/papers/w26549
[26] B. Townsend, “ From SRI to ESG: The Origins of Socially Responsible and Sustainable Investing ,” J. Impact ESG Invest., vol. 1, no. 1, pp. 10–25, 2020, doi: 10.3905/jesg.2020.1.1.010.
[27] M. Indriastuti and A. Chariri, “The role of green investment and corporate social responsibility investment on sustainable performance,” Cogent Bus. Manag., vol. 8, no. 1, 2021, doi: 10.1080/23311975.2021.1960120.
[28] I. S. Popescu, C. Hitaj, and E. Benetto, “Measuring the sustainability of investment funds: A critical review of methods and frameworks in sustainable finance,” J. Clean. Prod., vol. 314, no. November 2020, p. 128016, 2021, doi: 10.1016/j.jclepro.2021.128016.
[29] M. Amini and A. Rahmani, “Achieving Financial Success by Pursuing Environmental and Social Goals: A Comprehensive Literature Review and Research Agenda for Sustainable Investment,” World Inf. Technol. Eng. J., vol. 10, no. April, pp. 1286–1293, 2023.
Published
2024-06-16
Section
Articles
Copyright (c) 2024 Eko Tama Putra Saratian, Imma Rokhmatul Aysa, Urip Sudiana
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
