The ESG advantage: how green practices boost employee efficiency?

Purpose This paper aims to scrutinise any prospective influence on employee efficiency of sustainable practices in banks and the identification of any patterns that make the adoption and development of sustainability strategies efficient, effective and informative for the banking sector. The relationship is observed under the theoretical lens of triple bottom line and signalling theory. Design/methodology/approach The study covers the period from 2010 to 2023 and focuses on a sample of 22 banks in India. The investigation uses the panel data regression technique to obtain comprehensive insights from the in-depth analysis of the data and maintain proper academic rigour. Findings The results accentuate the necessity to align sustainability with organisational practices by uncovering its alignment with the ethical obligations of modern corporate governance as well as the productivity and satisfaction of the employees. Research limitations/implications One major constraint is that sustainability is a complex concept, and advanced models need to examine other variables of banks that impact this relationship to add to the growing academic debate on sustainability and efficient progress. As the field progresses, more dynamic interactions will be explored. Practical implications This research enables organisations to integrate sustainability with operations, establish Environmental, Social, and Governance (ESG)-related key performance indicators for efficiency and align employee roles with sustainability goals to enhance motivation, productivity and stakeholder engagement. Originality/value As banks in India deal with regulatory and stakeholder demands to act sustainably, this study gives useful insights on how ESG integration can help the organisation to achieve good performance, not just obey stricter guidelines.