6 principles banks need to adopt to thrive in the upcoming green economy
With increasing clarity on climate change, the roadmap to combat it is ever-evolving. to be a part of the solution, banks need to encode un guidance on responsible banking. Governments around the world are making promises and commitments to limit global warming to 2 degrees (as measured against 1990 levels). Policies are being created to […]
Banks need to tread carefully after COP26, when starting their sustainability journey
Pathways and promises often fail to become policies. After Glasgow, banks will have to exercise careful judgement when selecting transition scenarios. Conference of the Parties in Glasgow (COP26) has a long lineage… The United Nations Framework Convention on Climate Change (UNFCCC) was created in 1992 to fight ‘dangerous human interference with the climate system’. The […]
Banks need to square the circular economy or risk significant credit losses
Moving towards a circular economy is central to fighting climate change. This represents risks and opportunities for the banking sector. Defining a circular economy… The term circular economy is widely used within the discussion around addressing climate change. It has a specific place in the detailed plans of governments, such as the EU, as they […]
Banks risk becoming a weak link in the greening of supply chains
New and agile risk management strategies are required to mitigate the financial impact of climate change Banks will witness a dramatic shift in risk management in the coming decade… Climate change is now forcing them to reassess the way they measure credit risk, specifically the way they incorporate the impact of climate change into their […]
Banking is the foundation of sustainable buildings
It is imperative for banks to work with developers to ensure a sustainable built environment As the COP26 conference in Glasgow approaches, governments around the world are seeking solutions to enable them to meet their self-set targets to create a CO2-neutral world by 2050. Spending commitments in Europe & the US are already colossal, but […]
Climate change disclosures leave banks exposed
Business potential is being ignored In 2021, the world is focused on climate change, with the physical impacts of the Anthropocene wreaking havoc across the world, including central Europe and North America, with ‘once in a century’ floods and fires becoming regular news items. Governments and scientists around the world have identified potential pathways and […]
EU’s green policies need essential support by financial institutions
For the EU to be fit for 55, bank risk management needs to be fit for 22 In the run-up to the COP26, The EU has published numerous policies to support its ‘Green Deal’. ‘Fit for 55’. These policies aim to reduce The EU’s CO2 production by 55% (relative to 1990-level), with the goal to […]
Agricultural sustainability – what the banking sector must do
Climate change awareness and rising concerns have directed focus on sustainable agriculture. The Environmental Defense Fund (EDF) has been exploring the role of banking in agricultural sustainability (Financing Resilient Agriculture.) Its major findings are: The farming sector is at the front-line of climate change from the perspective of cause and effect – from contributing to […]
IPCC puts the world on high alert
NGFS provides a path for the banking industry to fight back The Network for Greening of the Financial System (NGFS) recently published the second phase of its framework for the economic impact of climate change and mitigation policies. In this article we review the framework and its importance in fighting climate change. NGFS started in […]
