Abstract:
This study examines the sustainability and green banking performance of Indonesian banking
sectors from their disclosures in sustainability reports covering a period of nine consecutive
years. The findings elucidate that sustainability and green-banking disclosures are
still dynamic year to year. Economic disclosures are the most widely disclosed information,
while environmental disclosures are the lowest. Applying a content analysis method,
this study uses the sustainability disclosure guidelines from the global reporting initiatives
(GRI) and Measuring Green Banking Practices guidelines developed by Shaumya and
Arulrajah (2016). Combining these two measurements provided a more comprehensive
disclosure list as guidance. This study is important, as it will contribute to the literature on
green banking, which is scarce in the extant literature. Given the lack of standardization in
sustainability, this study develops an indicator database to advance research on sustainability
measurement and reporting in relation to green banking. The managerial implications
for banks implementing sustainability they require sustainability governance as a platform
to evaluate and monitor the sustainable finance action plan and build a sustainability strategy.
This will enable banks to manage not only economic, but also environmental, social,
and governance (ESG) risk.
