With the end of 2022 drawing near, there is much conversation in the sector around change and looking towards a more sustainable future for banking. Some of the key headlines that caught our eye were the increased focus on the role banks are playing in 'green finance' and their race to get a bigger bite out of the mortgage market.
Spotlight On The Sector's Green Credentials
- As we entered November, COP 26 had just kicked off. The biggest commitment from over 450 of world banks was to the Gfanz (Glasgow Financial Alliance for Net Zero). In doing so they pledged to report annually on the carbon emissions linked to the projects they lend to
- The initiative, which was unveiled in April this year, also targets the provision of “Green Finance” as well as commitment to net zero emissions by 2050 – known as the Net-Zero Banking Alliance (NZBA) to which the 8 largest lenders and 30 other institutions in the UK have signed up to
- With financial institutions making these big commitments, we’re seeing green initiatives becoming more visible in the market. Examples this month include NatWest tightening their policy on coal lending, Barclays announcing a partnership to support corporate clients in reducing environmental impact. Visa launching a package of sustainably focused benefits for account users, linking spend with environmental impact. Further afield, Dutch digital bank Bunq celebrated planting its 5 millionth tree as a result of its pledge to plant a tree for every £100 spent on their card
- The financial sector will be integral to the commitments made at COP 26, and now organisations recognise the significant operational risk climate change brings, they are responding to the challenge