Green Governance in Action: Moroccan Banks’ Strategies for a Sustainable Transition and the Development of Green Finance

Moroccan banks are increasingly incorporating environmental, social, and governance (ESG) considerations to support the nation’s transition to a sustainable economy. Despite rising awareness, questions remain about the internal governance mechanisms enabling effective green finance adoption and alignment with regulatory directives. This study employed a quantitative design using a structured questionnaire, distributed to 15 Moroccan financial institutions, of which 12 valid responses were analyzed. Composite indices measured ESG governance, regulatory support, and green finance engagement, and multiple regression was used to test hypothesized relationships. Findings show that robust ESG governance (e.g., dedicated committees, board-level oversight) correlates positively with higher green finance engagement. Furthermore, supportive policies—such as central bank guidelines—significantly bolster sustainability initiatives. An interaction effect indicates that banks with strong governance structures amplify the benefits of regulatory support. These outcomes suggest that when governance and policies are synchronized, Moroccan banks can more effectively implement green loans, issue green bonds, and foster low-carbon transitions. Overall, the study highlights that strategic alignment between internal governance and external regulations is key to advancing sustainable finance, potentially shaping best practices for other emerging markets.