Green HRM and Green Image: The Serial Mediating Role Between Green Banking Practices and Sustainable Performance
Keywords:
Green banking practices, green human resources management, green image, sustainable performance. socially responsible investment theory.Abstract
The Purpose of the paper is to assess the role of green banking practices on sustainable performance through the serial mediation of green human resources management and green image. The researchers with a positivist research philosophy employ a cross-sectional study design to collect data through questionnaires comprised of scales adapted from prior studies. With a usable sample size of 356 respondents, the study uses PLS-SEM for measurement and structural model assessment. Study reveals the significant role of green banking practices on sustainable performance and serial mediation role of green human resources management and green image in between green banking practices and sustainable performance found significant. The study contributes to the body of knowledge by demonstrating how green banking practices improve sustainable performance. Its novelty resides in exploring the serial mediation role of green human resources management and green image between green banking practices and sustainable performance. Policy-wise, the findings point to the developing supportive legislation and incentives that would ensure that the banks make green HRM practices and improve their green image, as this would lead to the long-term sustainability outcomes of the banking industry.
References
Abas, N., Kalair, A., Khan, N. and Kalair, A.R. (2017). Review of GHG emissions in Pakistan compared to SAARC countries. Renewable and Sustainable Energy Reviews, 80, 990-1016. https://doi.org/10.1016/j.rser.2017.04.022
Ahmed, W., Najmi, A. and Khan, F. (2020). Examining the impact of institutional pressures and green supply chain management practices on firm performance. Management of Environmental Quality: An International Journal, 31(5), 1261-1283. https://doi.org/10.1108/MEQ-06-2019-0115
Aslam, W. and Jawaid, S.T. (2023). Green banking adoption practices: improving environmental, financial, and operational performance. International Journal of Ethics and Systems, 39(4), 820-840. https://doi.org/10.1108/IJOES-06-2022-0125
Amjad, F., Abbas, W., Zia-UR-Rehman, M., Baig, S. A., Hashim, M., Khan, A., & Rehman, H. U. (2021). Effect of green human resource management practices on organizational sustainability: the mediating role of environmental and employee performance. Environmental Science and Pollution Research, 28(22), 28191-28206. https://doi.org/10.1007/s11356-020-11307-9
Barclays (2016). Barclays Africa group limited integrated report. Barclays Bank.
Bashir, S., Khwaja, M.G., Rashid, Y., Turi, J.A. and Waheed, T. (2020). Green brand benefits and brand outcomes: The mediating role of green brand image. Sage Open, 10(3), 2158244020953156. https://doi.org/10.1177/2158244020953156
Bose, S., Khan, H. Z., Rashid, A., & Islam, S. (2018). What drives green banking disclosure? An institutional and corporate governance perspective. Asia Pacific Journal of Management, 35(2), 501-527. https://doi.org/10.1007/s10490-017-9528-x
Bergek, A., Mignon, I. and Sundberg, G. (2013). Who invests in renewable electricity production? Empirical evidence and suggestions for further research. Energy Policy, 56, 568-581. https://doi.org/10.1016/j.enpol.2013.01.038
Bukhari, S.A.A., Hashim, F. and Amran, A. (2020). Green Banking: A road map for adoption. International Journal of Ethics and Systems, 36(3), 371-385. https://doi.org/10.1108/IJOES-11-2019-0177
Bukhari, S.A.A., Hashim, F. and Amran, A. (2023). Green banking: a strategy for attainment of UN-Sustainable Development Goals 2030. International Journal of Environment and Sustainable Development, 22(1), 13-31.
https://doi.org/10.1504/IJESD.2023.127419
Bindeeba, D. S., Bakashaba, R., Tukamushaba, E. K., & Atuhaire, S. (2025). From green HRM to sustainable business performance: a two-Stage meta-analytic SEM of the mediating role of green innovation. Cogent Business & Management, 12(1), 2536678. https://doi.org/10.1080/23311975.2025.2536678
Chatzitheodorou, K., Skouloudis, A., Evangelinos, K. and Nikolaou, I. (2019). Exploring socially responsible investment perspectives: A literature mapping and an investor classification. Sustainable production and consumption, 19, 117-129.
https://doi.org/10.1016/j.spc.2019.03.006
Chen, Y.S. and Chang, C.H. (2013_. Towards green trust: The influences of green perceived quality, green perceived risk, and green satisfaction. Management Decision, 51(1), 63-82. https://doi.org/10.1108/00251741311291319
Chen, Y.S. (2010) 'The drivers of green brand equity: green brand image, green satisfaction, and green trust. Journal of Business Ethics, 93(2), 307-319.
https://doi.org/10.1007/s10551-009-0223-9
Citaristi, I. (2022). International Finance Corporation-IFC. In The Europa Directory of International Organizations 2022 (pp. 333-335). Routledge. https://doi.org/10.4324/9781003292548-67
Chin, W.W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research. Lawrence Erlbaum Associates.
Clark, L. A., & Watson, D. (1995). Construct validity: Basic issues in objective scale development. Psychological Assessment, 7, 309-319. https://doi.org/10.1037/1040-
3590.7.3.309
Cohen, J. (1988). Set correlation and contingency tables. Applied Psychological Measurement, 12(4), 425-434. https://doi.org/10.1177/014662168801200410
Correia, A.B., Farrukh Shahzad, M., Moleiro Martins, J. and Baheer, R. (2024). Impact of green human resource management towards sustainable performance in the healthcare sector: role of green innovation and risk management. Cogent Business & Management, 11(1), 2374625. https://doi.org/10.1080/23311975.2024.2374625
Chowdhury, T., Karim, R. A., Rabiul, M. K., Alam, M. U., & Karim, D. N. (2025). Fostering Sustainable Environmental Performance Through Green Banking Practices: The Mediating Role of Employees' Green Motivation and Green Behavior. Sustainability, 17(8), 3750. https://doi.org/10.3390/su17083750
Demers, E., Hendrikse, J., & Metzner, M. (2024). TCFD reporting: Early evidence related to the future of global climate-related disclosures. Working Paper. University of Waterloo.
Faeni, D. P., Oktaviani, R. F., Riyadh, H. A., Faeni, R. P., & Beshr, B. A. H. (2025). Green human resource management and sustainable practices on corporate reputation and employee well-being: A model for Indonesia's F&B industry. Environmental Challenges, 18, 101082. https://doi.org/10.1016/j.envc.2025.101082
Falcone, P. M., Morone, P., & Sica, E. (2018). Greening of the financial system and fuelling a sustainability transition: A discursive approach to assess landscape pressures on the Italian financial system. Technological Forecasting and Social Change, 127, 23-37. https://doi.org/10.1016/j.techfore.2017.05.020
Falk, R. F., and Miller, N. B. A (1992). Primer of Soft Modeling, The University of Akron Press, Akron, OH,
Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 18(3), 382-388. https://doi.org/10.1177/002224378101800313
Gulzar, R., Bhat, A. A., Mir, A. A., Athari, S. A., & Al-Adwan, A. S. (2024). GBP and environmental performance: Navigating sustainability in banks. Environmental Science and Pollution Research, 31(15), 23211-23226. https://doi.org/10.1007/s11356-024-32418-7
Gul, T., Karaatmaca, A. G., & Raza, A. (2025). Impact of green human resources management practices on sustainability through organizational resilience and organizational learning in Pakistan's banking sector. Sustainability, 17(5), 2087. https://doi.org/10.3390/su17052087
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
HHDNP, O., & Arulrajah, A. A. (2014). Green human resource management: Simplified general reflections. International Business Research, 7(8), 101-112. https://doi.org/10.5539/ibr.v7n8p101
IPCC (2007). Intergovernmental panel on climate change. World Meteorological Organization, 52(1-43), https://doi.org/10.1017/CBO9780511546013
Islam, H. (2025). Nexus of economic, social, and environmental factors on sustainable development goals: The moderating role of technological advancement and green innovation. Innovation and Green Development, 4(1), 100183.
https://doi.org/10.1016/j.igd.2024.100183
Islam, M.F., Mofiz Uddin, M.M. and Rahman, M.M. (2024). Factors affecting retailer social responsibility: a PLS-SEM approach in the context of Bangladesh. Social Responsibility Journal, 20(3), 605-625. https://doi.org/10.1108/SRJ-04-2023-0192
Kala, K., & Vidyakala, K. A. (2020) Study on The Impact of Green Banking Practices on Bank 's Environmental Performance with Special Reference to Coimbatore City. African Journal of Business and Economic Research, 15, 1-6
Korzeb, Z., & Samaniego, R. (2019). Sustainability performance: A comparative analysis in the Polish banking sector. Sustainability, 11(3), 653.
https://doi.org/10.3390/su11030653
Khairunnessa, F., Vazquez-Brust, D.A. and Yakovleva, N.A. (2021). Review of the Recent Developments of Green Banking in Bangladesh. Sustainability, 13, 1904.
https://doi.org/10.3390/su13041904
Khan, I.U., Hameed, Z., Khan, S.U. and Khan, M.A. (2024). Green banking practices, bank reputation, and environmental awareness: evidence from Islamic banks in a developing economy. Environment, Development and Sustainability, 26(6), 16073-16093.
https://doi.org/10.1007/s10668-023-03288-9
Kramar, R. (2014). Beyond strategic human resource management: is sustainable human resource management the next approach? The international journal of human resource management, 25(8), 1069-1089. https://doi.org/10.1080/09585192.2013.816863
Lee, N.R. and Miller, M. (2012). Influencing positive financial behaviors: the social marketing solution. Journal of Social Marketing, 2(1), 70-86.
https://doi.org/10.1108/20426761211203265
Majeed, M.T. and Luni, T. (2020). Renewable energy, circular economy indicators and environmental quality: global evidence of 131 countries with heterogeneous income groups. Pakistan Journal of Commerce and Social Sciences, 14(4), 866-912.
Malik, M.S., Ali, K., Amir, M., Tariq, K. and Ramzan, M. (2024). Green transformational leadership, environmental strategy, and green innovation: Mediated moderation of knowledge sharing and green absorptive capacity. Pakistan Journal of Commerce and Social Sciences, 18(2), 503-526. https://doi.org/10.64534/Commer.2024.049
Ma, Q., Tariq, M., Mahmood, H., & Khan, Z. (2022). The nexus between digital economy and carbon dioxide emissions in China: The moderating role of investments in research and development. Technology in Society, 68, 101910.
https://doi.org/10.1016/j.techsoc.2022.101910
Ndassi Teutio, A. O., Kala Kamdjoug, J. R., & Gueyie, J. P. (2023). Mobile money, bank deposit and perceived financial inclusion in Cameroon. Journal of Small Business & Entrepreneurship, 35(1), 14-32. https://doi.org/10.1080/08276331.2021.1953908
Nizam, E., Ng, A., Dewandaru, G., Nagayev, R., & Nkoba, M. A. (2019). The impact of social and environmental sustainability on financial performance: A global analysis of the banking sector. Journal of Multinational Financial Management, 49, 35-53.
https://doi.org/10.1016/j.mulfin.2019.01.002
O'Brien, R. M. (2007). A caution regarding rules of thumb for variance inflation factors.
Quality & quantity, 41(5), 673-690. https://doi.org/10.1007/s11135-006-9018-6
Park, H. and Kim, J.D. (2020). Transition towards green banking: role of financial regulators and financial institutions. Asian Journal of Sustainability and Social Responsibility, 5(1), 1-25. https://doi.org/10.1186/s41180-020-00034-3
Rehman, A., Ullah, I., Afridi, F. E. A., Ullah, Z., Zeeshan, M., Hussain, A., & Rahman, H.
U. (2021). Adoption of green banking practices and environmental performance in Pakistan: A demonstration of structural equation modelling. Environment, Development and Sustainability, 23(9), 13200-13220. https://doi.org/10.1007/s10668-020-01206-x
Renwick, D.W., Redman, T. and Maguire, S. (2013). Green human resource management: A review and research agenda. International Journal of Management Reviews, 15(1), 1-
14. https://doi.org/10.1111/j.1468-2370.2011.00328.x
Sharma, M. and Choubey, A. (2022). Green banking initiatives: a qualitative study on Indian banking sector. Environment, Development and Sustainability, 24(1), 293-319. https://doi.org/10.1007/s10668-021-01426-9
Sharmeen, K., Hasan, R. and Miah, M.D. (2019). Underpinning the benefits of green banking: A comparative study between Islamic and conventional banks in Bangladesh. Thunderbird International Business Review, 61(5), 735-744.
https://doi.org/10.1002/tie.22031
Siddik, A.B., Yong, L. and Sharif, A. (2024). Do sustainable banking practices enhance the sustainability performance of banking institutions? Direct and indirect effects. International Journal of Bank Marketing, 42(4), 765-784. https://doi.org/10.1108/IJBM- 02-2023-0109
Sturm, R.R. and Field, C.M. (2018). Benchmark error and socially responsible investments. Global Finance Journal, 38, 24-29. https://doi.org/10.1016/j.gfj.2018.01.005
Subedi, B., & Bhattarai, B. (2024). Green banking and perceived financial performance of Nepalese commercial banks. Open Journal of Business and Management, 12(03), 1912- 1941. https://doi.org/10.4236/ojbm.2024.123102
Sullivan, R.; Mackenzie, C. (2021). ESG Reporting and Stakeholder Information Value: Is It Decision-Relevant? Journal of Financial Reporting, 9(1), 10-25.
Verma, A., & Suri, D. R. (2025). Greening The Workforce: Evaluating The Impact of Green HRM on Bank Employee Performance-Evidence from Punjab Using Structural Equation Modeling. TPM-Testing, Psychometrics, Methodology in Applied Psychology, 32(2-June), 806-822. https://doi.org/10.5281/zenodo.17285395
Zhang, Q., Yang, L., Cheng, J. and Feng, T. (2024). How green human resource management and institutional pressure drive performance via green image: the equifinal paths and their performance outcomes. Asia Pacific Journal of Human Resources, 62(1), e12389. https://doi.org/10.1111/1744-7941.12389
Zhang, X., Wang, Z., Zhong, X., Yang, S. and Siddik, A.B. (2022). Do green banking activities improve the banks' environmental performance? The mediating effect of green financing. Sustainability, 14(2), 989. https://doi.org/10.3390/su14020989




