Exploring the impact of green banking practices on environmental performance: the case of Saudi Arabia and Vision 2030

Purpose – This study aims to investigate the influence of green banking practices (GBPs) on environmental performance in Saudi Arabia, with a particular emphasis on the role of Vision 2030 in promoting sustainable banking and environmental accountability. Design/methodology/approach – Primary data were collected through a structured survey distributed to 450 bank employees across Saudi Arabia, yielding 202 valid responses. The data were analyzed using Smart PLS to evaluate the structural model and test the proposed hypotheses. Findings – The findings reveal that operation- and policy-related GBPs significantly enhance environmental performance, whereas employee- and customer-related practices show limited or even negative effects. The study also finds a strong alignment between Saudi Green Initiatives and green banking adoption, though mediation analysis reveals that employee and customer engagement have weak mediating roles. Research limitations/implications – The study is limited to employees of Saudi banks and may not generalize to other stakeholders or regional contexts. Future research could expand to include longitudinal data and comparative studies with other Gulf countries. Practical implications – The study provides guidance for banking professionals and policymakers by highlighting the importance of environmental training, regulatory enforcement and inter-institutional collaboration. It also calls for innovative green strategies, such as paperless banking and eco-friendly financial products. Social implications – Supporting Vision 2030, this research contributes to national and global sustainability agendas by identifying ways in which banks can actively participate in climate action and sustainable development. Originality/value – This study offers novel insights into the differentiated effects of various GBPs on environmental performance in the unique context of Saudi Arabia’s Vision 2030, addressing a gap in the green finance literature in the MENA region.