The impact of Green Financing, Fintech Adoption, Green Innovation and Corporate Social Responsibility on Bank Environmental Performance in Malaysia

Purpose: This study investigates the impact of Green Financing (GF), Fintech Adoption (FA), Green Innovation (GI), and Corporate Social Responsibility (CSR) on Environmental Performance (EP) within the Malaysian banking sector. Methodology: The study employs a quantitative research approach using secondary data extracted from the sustainability reports, annual financial disclosures, and ESG databases of commercial banks in Malaysia. A purposive sampling method was used to select 20 banks that actively engage in green initiatives. The data was analyzed using SPSS software, applying descriptive statistics, regression analysis, correlation analysis, and chi-square tests. Findings: Preliminary results suggest that all four independent variables—Green Financing, Fintech Adoption, Green Innovation, and Corporate Social Responsibility —have a significant and positive influence on Environmental Performance. Among these, Green Innovation shows the strongest correlation, followed by Fintech Adoption. The findings also highlight gaps in standardized environmental performance metrics, particularly in reporting and transparency across institutions. Unique contribution to theory, practice and policy: Theoretically, the study contributes to Legitimacy Theory by demonstrating how financial institutions align with societal values through sustainability practices. In policy terms, the results can be used to justify further development and introduction of frameworks, such as the Climate Change and Principle-Based Taxonomy (CCPT) by Bank Negara Malaysia. In practical terms, the research provides banks in which to set their action plans on green policies and stakeholder confidence. It also focuses on the necessity of uniformity of measurement systems and inter-sector cooperation, when it comes to reinforcing environmental management in the financial industry in Malaysia.