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Green Culture and ESG Leadership: Driving Sustainable Finance through Organizational Readiness

Author

Listed:
  • Maruli Ricardo Pardede

    (Hasanuddin University)

  • Mursalim Nohong

    (Hasanuddin University)

  • Bahtiar Herman

    (Universitas Muhammadiyah Sidenreng Rappang)

Abstract

This study investigates the influence of green organizational culture and ESG-based leadership on the implementation of sustainable finance strategies, with organizational readiness as a mediating variable. In the face of increasing global demands for sustainable transformation, especially within the banking sector, internal organizational factors play a crucial role in translating sustainability values into actionable strategies. Using a quantitative explanatory approach and data from 377 employees of Bank Negara Indonesia (BNI) in the Makassar region, this research applies Structural Equation Modeling–Partial Least Squares (SEM-PLS) to examine the direct and indirect effects between variables. The results show that both green culture and ESG leadership significantly influence the implementation of sustainable financial strategies, either directly or indirectly through organizational readiness. Organizational readiness functions as a key internal mechanism that links values and leadership with the actual execution of sustainable strategies. These findings emphasize the importance of fostering a strong internal culture and leadership model aligned with ESG principles to enhance institutional readiness and drive strategic sustainability in the financial sector. The study contributes to the literature on sustainable finance by integrating behavioral and structural perspectives, offering practical insights for banking institutions aiming to support green transition agendas.

Suggested Citation

  • Maruli Ricardo Pardede & Mursalim Nohong & Bahtiar Herman, 2026. "Green Culture and ESG Leadership: Driving Sustainable Finance through Organizational Readiness," Advances in Economics, Business and Management Research,, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-709-5_136
    DOI: 10.2991/978-94-6239-709-5_136
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