Kanwal Naseer

Banking industry is one of the major contributors to environmental pollution. In order to reduce the negative effects of climate change, the International Finance Corporation (IFC) has been supporting the developing countries to enhance green business opportunities, reports WealthPK. The IFC together with the State Bank of Pakistan (SBP) is also pushing the financial institutions in Pakistan to finance green initiatives and raise their national commitment to minimizing the adverse consequences of climate change.

Talking to WealthPK, officer at Muslim Commercial Bank (MCB), Mr Daniyal said the State Bank of Pakistan (SBP) has taken some important measures to increase green banking in the whole banking industry and advised them to strictly follow. The banking sector has also embraced a number of green initiatives such as installing solar-powered ATMs and using solar power as an alternative energy source in rural and distant locations, he added.

He said many banks have begun providing incentives for environment-friendly initiatives in industries in order to take advantage of the chances to improve the environment, reduce carbon emissions, and effectively employ renewable energy for sustainability. Green banking projects accept and put into practice environmental lending norms that are actually for the benefit of the society and environment, Daniyal added.

‘’Banks are acting as an agent of environmental change by adopting green banking concepts, such as promoting online banking instead of branch banking, paying bills electronically rather than by mail, offering various environment-friendly schemes,‘’ he said. He further explained that banks are cutting costs by introducing energy-efficient technologies, on-site renewable energy generation, and paperless banking.

He said storage, management, and sharing of documents become much more efficient in a paperless environment besides helping in increasing the speed, security, and accuracy of financial transactions. ‘’By using green banking techniques, we may lower our own carbon footprint by using less electricity for things like lighting, air conditioning, electronic equipment, and heavy paper usage,’’ Daniyal said.

He explained that the customers are also benefitting from online banking like balance inquiry, fund transfer and deposit, opening and closing accounts, which eliminates paper waste. ‘’Online banking also makes life easier and more secure for customers. It saves time and money by allowing the people to do all of their banking-related activities remotely or through the mobile device rather than having to travel to the bank, saving both the precious time and money. But still there is a lot of work to be done in the green banking sector,’’ the MCB official said.

He said the State Bank of Pakistan should arrange more awareness programs for their banking staff in order to promote green banking in Pakistan. According to WealthPK, it can be said that green banking assists in the social, economic, and environmental growth of a nation; however, it is inadequate in an emerging economy like Pakistan due to low customer awareness of green banking, high investment costs, and technical challenges. Banks and other financial organizations may significantly contribute to global initiatives to reduce environmental risk and improve the quality of life on this planet.

Credit : Independent News Pakistan-WealthPk