CURRENT TRENDS AND PRACTICES IN ESG IN BANKING SECTOR

AUTHOR –VIKRAM CHAUHAN* & DR. AMIT DHALL**

* STUDENT OF LAW, AMITY LAW SCHOOL, NOIDA

** FACULTY OF LAW, AMITY LAW SCHOOL, NOIDA

BEST CITATION – VIKRAM CHAUHAN & DR. AMIT DHALL, CURRENT TRENDS AND PRACTICES IN ESG IN BANKING SECTOR, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (5) OF 2025, PG. 715-724, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

The banking sector is increasingly embracing Environmental, Social, and Governance (ESG) principles as a core part of its operations and decision-making. Recent trends show that financial institutions are integrating ESG criteria into lending, investment strategies, and risk management frameworks. Banks are not only financing green and sustainable projects but also enhancing transparency through detailed ESG disclosures. There is a growing emphasis on responsible banking practices, such as supporting inclusive growth, reducing carbon footprints, promoting workplace diversity, and aligning with international sustainability standards. Technological advancements, regulatory pressures, and rising stakeholder expectations are also driving banks to adopt innovative ESG tools and reporting mechanisms. These evolving practices reflect the sector’s shift toward long-term value creation and ethical governance.