Article’s

The transition toward sustainable finance has become a strategic priority for the global banking industry due to increasing climate change risks, stricter environmental regulations, and the growing demand for responsible investment practices. In India, banks are progressively adopting digital technologies and environmentally sustainable financial services; however, the integration of Artificial Intelligence (AI), Environmental, Social and Governance (ESG) analytics, climate risk assessment, and carbon-aware lending into a unified decision-making framework remains limited (1). Existing studies primarily focus on digital banking and paperless operations, with comparatively less attention given to AI-enabled sustainability intelligence and predictive environmental risk management (2). The present study proposes a Green Banking 5.0 framework that integrates AI-driven analytics, ESG evaluation, climate-risk assessment, and carbon-conscious lending to support sustainable financial decision-making in the Indian banking sector. The study employs a descriptive and analytical research design using both primary data collected from 120 banking customers through a structured questionnaire and secondary data obtained from published literature, banking reports, government publications, and sustainability documents (3). Statistical analysis includes percentage analysis, comparative interpretation, and graphical representation to evaluate customer awareness, adoption of green banking services, and perceptions regarding sustainable banking initiatives (4). The findings indicate that customers increasingly prefer digital and environmentally friendly banking services because of their convenience, operational efficiency, and reduced environmental impact. Furthermore, AI-assisted ESG assessment and climate-risk analytics have significant potential to improve credit appraisal, strengthen risk management, and encourage sustainable investment decisions while supporting India’s long-term climate and net-zero objectives (5). Despite these opportunities, several challenges remain, including inadequate ESG data availability, cybersecurity concerns, technological infrastructure limitations, and the absence of standardized sustainability reporting frameworks (6). The proposed Green Banking 5.0 framework provides a comprehensive conceptual model that combines digital transformation with sustainable finance and offers practical guidance for banks, regulators, and policymakers seeking to strengthen environmentally responsible financial systems. The study contributes to the emerging literature on AI-enabled sustainable banking by presenting an integrated approach for future-ready banking aligned with Industry 5.0 principles and global sustainability goals (7).