Banks have an imperative role to play in the fight against climate change

Fintech Global publishes an in-depth report on the current climate crisis and the true impact that can be made through the financial services industry

Now more than ever, the world is just now waking up to the reality that global warming is a genuine threat to our way of life. In a recent article, Fintech Global has taken up the baton calling for action and as well providing solutions.

Banks are central to decarbonising the economy. While there’s been a fundamental shift towards more green-conscious habits in other industries, there is a growing sense of urgency to prioritise sustainability and reduce carbon emissions in the financial sector.

The article lists just a few of the major banks that have committed to measuring and reporting carbon emissions resulting from their lending and investments, including Bank of America Corp., Barclays Plc and Morgan Stanley. This is a direct response to the fact that according to climate nonprofit CDP, “almost all climate-related impacts and risks of global financial institutions come from financing the wider economy”.

In addition to measuring, reporting, and financing green investments, banks have smart ways to fight climate change that are also good for business. Fintech Global reached out to the Meniga CMO and VP Business Development Bragi Fjalldal.

“It is really more than just about ‘house cleaning’ — it is a matter of social responsibility and risk management.

More importantly, banks have significant business opportunities to serve this rapidly growing demand for eco-friendly financial services.

From carbon footprinting, green savings and investment products to carbon offsetting for individuals and SMEs.”

For change to occur, action needs to be taken at every level. Sweeping shifts need to happen at the financing level, green businesses need to flourish, and each individual must take action. The power that banks hold is that they can move the needle in each of these levels. They control where the money flows at the top level; moreover, they can provide their retail banks with the technology that allows customers to track and reduce their carbon footprint.

“…by estimating customers’ carbon footprint through technology based on their spending data, banks can enable people to understand and monitor their individual carbon footprints simply and transparently.

Furthermore, banks can encourage clients to take a greener route in financial decisions by putting eco-friendly financial services products and emission offsetting investment projects at their customers’ fingertips.”

Fjalldal

This Fintech Global article shines a spotlight on the accountability banks have in the fight against climate change and offers various avenues for which change can occur.

Click here to read the full article.

About Fintech Global

FinTech Global is the world’s leading provider of FinTech information services, B2B media products and industry events. They inform, promote and connect FinTech buyers, sellers, investors and innovators worldwide They serve a network of over 300,000 FinTech professionals from market-leading organizations — financial institutions, technology innovators, corporate investors, venture firms and expert advisory firms enabling them to get the information they need to make better business decisions and to connect and engage with the people and organisations they want to do business with.

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