Banks turning green in pursuit of net zero
As countries across the world set out plans to bring their emissions to net zero by 2050, financial institutions are increasingly setting their own carbon neutrality goals. Limiting global warming to 2°C by 2050 will require $3 trillion annually in investment, according to an estimate by the Intergovernmental Panel on Climate Change, and banks will play an integral part in channeling that financing. To find out what banks are doing to get to their lending portfolios to net zero, we talk to Amit Puri, global head of environmental and social risk management at U.K.-based Standard Chartered, about the bank’s net zero ambitions. “We are really trying to figure out on a sector-by-sector basis, on a geography basis, where are we today, where is the baseline, and therefore what do we need to do to reduce emissions in line with the commitment that we have made?” Amit says. We also hear from executives at Natixis about a tool the French investment bank created to make its lending portfolio more sustainable. That approach “should help us to drive the entire portfolio of the bank toward a net zero balance sheet,” says Karen Degouve, head of sustainable business development at Natixis. To learn more about our ESG Thought Leadership, visit the new S&P Global Sustainable1 website. Photo credit: Getty Images