Published Online:April 2026
Product Name:The IUP Journal of Management Research
Product Type:Article
Product Code:IJMR020426
DOI:10.71329/IUPJMR/2026.25.2.28-44
Author Name:K Senthil Velan, Abhiraj Kulkarni, Chaitra Hebbar and Jayashree M
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:28-44
The paper analyzes how green financial allocation generates measurable environmental outcomes, thereby evaluating sustainable performance beyond disclosure-oriented ESG indicators. For this purpose, it has developed a sustainability efficiency framework that evaluates how effectively green financial allocations generate measurable environmental outcomes. Using secondary data from Green Deposit Impact Reports of selected Indian banks, investment normalized indicators, such as carbon efficiency, energy efficiency, and electric mobility impact efficiency, have been compared across project categories and institutions. The findings indicate substantial variation in sustainability efficiency, suggesting that higher financial allocation does not necessarily correspond to greater environmental impact.
The global transition toward sustainable development has significantly reshaped the role of financial institutions, positioning them as key actors in achieving environmental and climate-related objectives. Traditionally viewed as intermediaries facilitating capital allocation, banks and financial institutions are increasingly expected to integrate sustainability considerations into financial decision-making and investment strategies.