SUSTAINABLE BANKING: THE CONCEPT OF THE BANK'S ENVIRONMENTAL POLICY IN THE FIELD OF RESOURCE ALLOCATION TO FOSTER SUSTAINABLE ECONOMIC DEVELOPMENT

The article examines the importance of financial institutions' participation in the process of sustainable transformation. In particular, the works on determining the state of fulfillment of banks' obligations under the core principles of sustainable banking, identifying the contribution of banks and other financial institutions in promoting sustainable change in the economy, and ensuring the achievement of Sustainable Development Goals by 2030 are analyzed. A study of the state of energy consumption in Ukraine, trends in the market of renewable energy sources, and the implementation of biomass-to-energy projects was conducted. Key barriers to the implementation of such projects have been identified, including the need to establish effective financial support mechanisms, namely bank lending policies. The contribution of the banking sector in emerging markets to the promotion of sustainable transformation and the achievement of the Sustainable Development Goals has been studied. The concept of the bank's environmental policy in the field of resource allocation to foster sustainable economic development is formed, which is based on two key structural components. The first involves managing environmental risks in the field of lending, in particular, which would regulate the participation of banks in the implementation of environmental security measures by assessing their loan portfolio, analyzing all projects subject to lending for compliance with environmental safety and environmental standards, and refusal in consideration of loan applications to projects that pose a potential threat to the environment, and enterprises engaged in environmentally hazardous activities. The second determines the development of "green finance" programs as a structural component of the environmental management system of banks, in particular, for lending to various profitable environmental projects to increase the effectiveness of banks' participation in their financing, as well as opportunities for banks to participate in investing non-profit territorial communities, cities in order to increase the environmental responsibility of banks and their participation in the sustainable development of the region in particular and the country in general.