Description of Invention
The continued financing of fossil fuel projects by major banks, with $705 billion allocated in 2023 alone, underscores a critical tension between financial institutions and global climate commitments. While sustainable finance has gained prominence, a notable research gap persists in understanding how future financial decision-makers, particularly university students, perceive banks’ involvement in fossil fuel financing. This study systematically examines customer loyalty, subjective norms, awareness, transparency, and reputation as key determinants of these perceptions. Using survey data from 278 university students, analyzed through IBM SPSS Statistics 22, the study identifies significant trends in perception. Findings reveal that loyalty fosters positive views, whereas awareness amplifies scrutiny, highlighting the pivotal role of transparency and corporate accountability. Students largely perceive banks’ sustainability commitments as insufficient, reinforcing the demand for ethical banking practices. This research argues that enhanced transparency, robust sustainability policies, and targeted financial literacy initiatives are imperative for banks to maintain legitimacy among emerging generations.