Enhancing Sustainability Performance Through Environmental Awareness and The Mediating Role of Green Behavior: a Case Study of PT Bank Xyz

Abstract

Background: The phenomenon of climate change has prompted businesses across various sectors to rapidly transition towards sustainable practices, addressing environmental, social, and economic challenges. In this context, the banking sector plays a pivotal role by allocating financial resources to support the realisation of sustainable objectives. Moreover, the integration of the triple bottom line (3P) principle into banking operations, encompassing the evaluation of employees' environmental awareness and pro-environmental behaviours, underscores the sector's commitment to sustainability. This commitment holds the potential to enhance the bank's sustainability performance.
Purpose: The present study aims to analyse the influence of environmental awareness (EA) on the sustainability performance (SP) of PT Bank XYZ, both directly and indirectly, through the mediating role of green behaviour (GB).
Design/methodology/approach: This study uses a quantitative approach, using a randomly selected sample of 600 respondents from the total population of PT Bank XYZ employees. The sample size is determined according to the latest theory of the 30-trait rule, which ensures its adequacy for analysis. Data were analysed using descriptive analysis and SEM-PLS using SmartPLS 4.0 software.
Findings/Results: The results of this study indicate four primary findings. First, EA exerts a significant positive effect on SP. Second, EA contributes significantly positively to GB. Third, GB has a positive and significant impact on SP. Finally, GB acts as a mediator in the relationship between EA and SP, exerting a significantly positive effect.
Conclusion: The findings of this study demonstrate that EA exerts a significant positive impact on SP, both directly and indirectly, through the partial mediation of GB. These findings suggest that an enhancement of employees' environmental awareness fosters greener workplace behaviours, consequently enhancing the sustainability performance of PT Bank XYZ.
Originality/value (State of the art): PT Bank XYZ has established a net zero emissions (NZE) target for its operations by 2030 and NZE for its loan and investment portfolios by 2050. By aligning with these targets, the bank becomes a pertinent subject for this study. The application of the 30-times trait rule, a recently developed sampling theory in SEM-PLS, is expected to enhance the precision of findings derived from the analysis. This enhanced accuracy will facilitate a more nuanced understanding of the relationship between variables and their contribution to the sustainability performance of PT Bank XYZ.

Keywords: climate change, environmental awareness, green behaviour, SEM-PLS, sustainability performance