Effect of Energy Sustainability on the Performance of Deposit Money Banks: Perception of the Managers

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Effect of Energy Sustainability on the Performance of Deposit Money Banks: Perception of the Managers

ABSTRACT:-Energy usage has become an important concern in the past years due to its growth, awareness and increase in taking the personal responsibilities in preventing climate change. However, the overall energy inefficiency system and environmental problems caused by the manner in which it is sourced, produced and used has become a key challenge to global economic development. Hence, sustaining energy efficiency is an important approach in financial institutions as energy consumption has persistently been on an increasing verge. This study examines the effect of sustainable energy consumption on the of deposit money banks in Lagos, Nigeria. A well-structured questionnaire was used as basis for investigating a representative sample of 77 respondents who areoperational managers of deposit money banks in Lagos, Nigeria. Partial least square structural equation modeling (PLS-SEM) was used to test the effect of energy sustainability on the financial and operational performance of deposit money banks. This study found a significant effect of energy sustainability on financial and operational performance. Thus, it is concluded that energy sustainability is an important factor for financial and operational performance. The study therefore recommends that adoption of environmental technologies, energy efficiency education and investment in sustainable energy/ green facilities be encouraged among deposit money banks to better reap the benefits of sustainable energy consumption.

Index Terms: – Sustainability, energy sustainability, financial performance, operational performance.

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