Page 40 - Banking Finance November 2025

IC
L
E
R
T
A
ARTICLE
Can HR Drive ESG in

Banks? Unveiling the Role

of Green HRM in Shaping

Sustainable Development

M. Lavanya
Senior Manager (Faculty)
Union Bank of India
Leadership Academy
Union Bank Knowledge Centre,
Bengaluru

Green Human Resource Management (GHRM) refers to the application of environmental
sustainability in HR practices. Indian banks are adopting GHRM practices to reduce their carbon
footprint and promote eco-friendly initiatives. Banks are taking initiatives to cover maximum
buildings certified by Indian Green Building Council.

Introduction transformations, prompted by both regulatory frameworks
and the growing demand for sustainable financial practices.
The increasing importance of Environmental, Social, and
According to a report by India Ratings and Research (2023),
Governance (ESG) criteria in business operations reflects
over 80% of India's large banks have incorporated ESG strat-
global shifts toward sustainability, responsible business prac-
tices, and long-term stakeholder value creation. India's egies into their operations.
banking sector is at a pivotal moment in its journey toward
The Reserve Bank of India (RBI) and the Securities and Ex-
sustainable development. Within this broader framework,
change Board of India (SEBI) have been crucial in pushing
Human Resources (HR) plays a critical role in fostering a
for ESG disclosures and performance tracking. For instance,
culture of sustainability, inclusivity, and ethical governance.
in 2021, SEBI mandated that the top 1000 listed compa-
ESG integration in HR practices is no longer just a corpo-
nies in India must disclose their ESG practices under a stan-
rate buzzword but a necessary pathway for Indian banks
to ensure they align with national and global sustainability dardized format. As a result, financial institutions are now
actively incorporating ESG principles into their operations
objectives.
to meet these regulatory requirements and maintain their
competitiveness in a rapidly evolving market.
The Rise of ESG in India's Banking Sector
The banking sector, traditionally known for its financial ser- ESG Integration in Human Resources
vices, is increasingly being scrutinized for its environmental
footprint, social responsibility, and governance practices. As Environmental Integration: Green HRM
of 2023, India's banking sector is undergoing significant Green Human Resource Management (GHRM) refers to the

36 | 2025 | NOVEMBER | BANKING FINANCE