Based on the ability-motivation-opportunity (AMO) framework, this paper develops and tests a moderated mediation model to investigate how and when green high-performance work systems (GHPWS) lead to green service innovation (GSI). For this purpose, the current study examines the mediating role of decent work (DW) and the moderating role of climate change skepticism (CSS) in the relationship between GHPWS and GSI.

Overall data collected from 262 Pakistan banking employees analyzed through the SPSS PROCESS macro supports this model.

Findings suggest that GHWPS increased GSI through DW. The positive effect of DW on GSI was particularly high for the employees with low CCS.

Theoretically, this study expands knowledge in sustainable business practices and human resource management. Practically, it offers organizations strategies to integrate sustainability into their operations. This study implies that human resource management must be realigned with the overall organizational sustainability strategy to adopt environmental innovations. Along with the commercial and economic outcomes, this research has implications for public policy by advocating for practices that support environmental sustainability and DW. Societally, it promotes awareness of the importance of sustainability in business, which has a potential ripple effect on public attitudes and improves quality of life through environmental preservation.

This study provides unique insights into the employees’ doubts about anthropogenic climate change and the importance of organizations implementing GHPWS toward cultivating DW and GSI in the context of developing countries.