Financial Sector Performance and Environmental Sustainability: Assessing the Moderating Effect of Social Responsibility

The study explores the effect of FSEP on Environmental Performance (EPER) in Saudi Arabia's financial sector including a focus on the mediating role of FSSR on EPER. To investigate the hypothesized relationships, we collected primary from 512 employees working in the Saudi financial sector in Alkharj governorate, and SEM was used for hypothesis testing to conclude the results. We find that FSEP enhances both EPER and FSSR and also demonstrates that FSSR positively influences EPER. Furthermore, FSSR plays a significant mediating role as well. Which is strengthening the relationship between FSEP and EPER. These findings conclude the importance of integrating environmentally sustainable financial practices to accelerate economic sustainability and EPER in this sector. We suggest to the Saudi financial sector to further adopt green practices to achieve long-term economic and environmental sustainability in the long run. By reducing energy consumption and mitigating pollution from this sector, the Saudi financial sector can actively contribute to the nation's broader environmental sustainability goals.