The 3 keys that financial institutions need for a green future

THE appetite for sustainable financing has accelerated in recent years, driven by global initiatives to tackle climate change and promote sustainable development. Institutional and retail investors alike are increasingly putting money into responsible financing structures, such as green bonds and sustainability loans.

Corporates associated with sustainable finance products often reap reputational benefits too, and this has galvanised many companies to get on the environment, social, and governance (ESG) bandwagon, with or without regulatory incentive. This shift has not gone unnoticed, with increased scrutiny from investors and other stakeholders, and a demand for robust discussions around ‘greenwashing’ and its implications.

Financial institutions such as banks, insurance companies, and asset managers play an instrumental role in helping businesses transition towards net-zero emissions, and are well-positioned to mitigate the risk of greenwashing. Many are already actively raising awareness, bridging disclosure gaps, and conducting undertakings in connection with ESG targets.