Darpan Kulshreshtha’s Post

Before you read further, find the anomaly in the attached picture. It is a snapshot from a magazine on the performance of two commercial banks.   It would be interesting to see what you found : ) Here is what I find odd, and I would love to hear what you think. When I first saw the performance of the two banks, I was taken aback. The sheer magnitude of the net profits seemed outrageous. On Thursday, I was on a panel discussing green finance, ESG, innovation, and impact. A bank board member emphasised the importance of ESG and at the same time, mentioned the (unfortunate) need for risk management for potentially impactful but risky projects. I know firsthand how challenging it can be to secure finance, even for scaling up a healthy business. ESG, for me, is about looking after the stakeholders. To me net profits of that size for a bank are an anomaly in a time when we need to look after stakeholders. Consider the stark contrast, banks continue to record staggering profits. Meanwhile, individuals are denied loans, not for developing and scaling world-changing ideas, but for necessities like feeding their families or securing a home for them and for future generations. Others are trapped in a cycle of debt due to bank repayments, leading to a myriad of societal issues. These profit figures are a clear indication that the system is in dire need of repair. Don’t you think a change is needed? As individuals interested in impact, finance, ESG, and SDGs, what do you think is needed for a more equitable banking system that serves the people and the planet? 

key rate 4.50%, Appro figures for all others banks ( deposit : nearly 2% ; Fixed rate: 4.25% fairly )..... HOUSE LOAN/PERSONAL LOAN/CAR LOAN : 7% .. not a fair game at all

🌍 Sustainability-linked loans: A concept under scrutiny Once celebrated as the future of green banking, sustainability-linked loans are now facing significant challenges. These loans, which tie interest rates to sustainability targets, aimed to incentivize businesses to adopt greener practices while boosting ESG credentials. Unfortunately, allegations of greenwashing have tarnished their reputation. The lack of regulation has left these targets vague, often reduced to just words like green or sustainable. As a result, both clients and green investments are declining. Access the report here: https://lnkd.in/gxYHv-Yy With these loans hemorrhaging clients, it's clear that the sector must address these concerns to regain trust and relevance in a world demanding genuine environmental action. Let’s rethink how we can create a more transparent and impactful green finance system. #Sustainability #GreenFinance #ESG #SustainabilityLinkedLoans #GreenBanking #ClimateAction 👉 Explore more about this critical shift in green banking trends! https://lnkd.in/gZTsNHaN

🌱 Green Finance: The Future of Banking 🌍 It’s no secret—there’s a huge push for the banking industry to go green. With climate change on everyone’s radar, banks are under serious pressure to not just talk about sustainability but to actually make it happen. From investors to regulators, everyone’s asking the same question: “What are you doing to help the planet?” 💡 Why It’s Important: - Managing Risk: Investing in green projects isn’t just good for the earth; it’s smart business. It helps reduce risks tied to climate change. - Building Trust: Banks that prioritize sustainability are building stronger, more trustworthy brands. - New Opportunities: The green economy is booming. Think renewable energy, green bonds, and sustainable infrastructure—there’s real money to be made. The bottom line? Banking needs to go green, not just because it’s the right thing to do, but because it’s where the future is headed. 🌍💪 #GreenFinance #SustainableFinance #ClimateFinance #Sustainability #Banking #ESG #FutureOfFinance

New Year's Resolution for Bank's 👇 Start taking green finance seriously. As any good banker understands, even small investments, if made far enough in the past and in the right places can greatly increase in value over time. As we enter 2025, the ambitious net-zero emissions targets of 2050 are closer than ever. For banks to achieve these goals in 25 years, they require a thorough green finance transition strategy now. However, many banks don't know where or how to start the transition without impacting profitability or incurring too much risk. At Netto, we understand smart investments made in the right places today lay the foundation for a greener, more resilient, and more profitable future for bank's and their real-estate portfolios. So, does your bank have a green transition strategy?

🌍💼Are you ready to capitalize on the momentum of sustainable finance??? 🔹The landscape of sustainable finance is evolving rapidly, with new central bank and regulatory actions driving growth. But with stricter criteria for ESG-labeled products on the horizon, it's time for businesses to seize the moment and explore the myriad opportunities in this burgeoning market. 1.Market Expansion: - Regulatory Support: New initiatives from central banks and regulators worldwide are fueling the growth of the sustainable finance market, creating opportunities for companies to align with sustainability goals and attract investment. - Investor Demand: Increasingly, investors are seeking ESG-labeled products as part of their sustainable investment strategies, driving demand for companies with strong environmental, social, and governance credentials. 2.Navigating Complexity: - Rigorous Standards: While the growth of sustainable finance presents opportunities, companies must navigate the complexities of stricter criteria for ESG-labeled products, ensuring alignment with evolving regulatory frameworks and investor expectations. - Transparency and Accountability: Transparency in ESG reporting and adherence to rigorous standards are crucial for companies to build trust with investors, stakeholders, and consumers in the sustainable finance market. 🔹Empirical Insights: - 📊 Regulatory Momentum: According to a report by the United Nations Environment Programme, regulatory developments have led to a significant increase in sustainable finance initiatives globally, with central banks playing a pivotal role in driving market growth. - 💡 Investor Preferences: Research by Deloitte indicates that 85% of institutional investors consider ESG factors when making investment decisions, highlighting the growing importance of sustainability in capital allocation. - 📈 Market Potential: Empirical data from BloombergNEF suggests that global sustainable debt issuance reached a record $1.7 trillion in 2021, underscoring the immense growth opportunities in the sustainable finance market. 🔹 Companies that proactively embrace sustainability and align with rigorous ESG criteria stand to benefit from increased access to capital, enhanced reputation, and improved resilience in the face of evolving market dynamics. 💡 Let's together begin on a journey towards a greener, more resilient future while unlocking new growth opportunities for your business. #GreenFinance #SustainableInvesting #RegulatoryTrends #ESGIntegration #SustainableFinance #ESG #MarketOpportunities Pic source: moneycontrol.com

FIVE TRILLION DOLLARS. Also known as US$5,000,000,000,000. Also known as a lot of money. Having attended the Capital for Climate Conference and heard from BlackRock, Morgan Stanley, BNP Paribas and NatWest Group, I know how climate finance could be THE biggest contributor to the world's net zero efforts. The guidance from The Principles (who sound a bit Game of Thrones to me) will oil the wheels of the sustainable bonds markets and encourage more borrowers to tie their rates to their green performance. I hope the lenders keep pushing this as hard as they can. It could be game- and planet-changing. Nicholas Pfaff ICMA Centre Agnes Gourc BNP Paribas Alban de Faÿ Amundi Isabelle Laurent EBRD Gemma Lawrence-Pardew Loan Market Association (LMA) #climatefinance #sustainablebonds #BNPParibas

Accelerating #Sustainable #Finance: Ceres' Insights to Managing #Climate #Risks in #Banking and #Insurance June 20-- 1:15 to 2:00 pm EDT https://lnkd.in/ejuUT_9z

Are Shareholders, Directors, Executives of banks and private companies doing enough to allow for adoption of ESG principles for sustainable operations? #Sustainable #ESG #riskmanagement #banking #climate #carbonemissions #sustainability. Read the most recent GPB report for important guide.

🌍 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐚𝐭 𝐚 𝐂𝐫𝐨𝐬𝐬𝐫𝐨𝐚𝐝𝐬: 𝗪𝐡𝐚𝐭’𝐬 𝐍𝐞𝐱𝐭 𝐟𝐨𝐫 𝐄𝐒𝐆? ⁣ ⁣ You know, with sustainability finally gaining momentum, events like these feel like LA fires, don’t they? ⁣ ⁣ 💭 𝐇𝐞𝐫𝐞’𝐬 𝐰𝐡𝐚𝐭’𝐬 𝐛𝐞𝐞𝐧 𝐨𝐧 𝐦𝐲 𝐦𝐢𝐧𝐝: ⁣ 📧 I still remember Larry Fink’s email pushing ESG portfolios—it was such a game-changer. BlackRock, being the giant it is, made waves across the industry. ⁣ 🌱 The 𝐍𝐞𝐭 𝐙𝐞𝐫𝐨 𝐛𝐲 𝟐𝟎𝟓𝟎 target from the UN’s NZBA gave us hope. Sure, there was skepticism, but with financial powerhouses like JP Morgan on board, it felt like we could at least get halfway there. ⁣ ⁣ 🚨 𝐁𝐮𝐭 𝐡𝐞𝐫𝐞’𝐬 𝐭𝐡𝐞 𝐜𝐨𝐧𝐜𝐞𝐫𝐧: ⁣ 📉 BlackRock’s 2024 stewardship report dropped crucial mentions: ⁣ - 🌡️ No talk of “global warming.” ⁣ - 📊 No focus on aligning business models with climate scenarios like limiting warming to “well below 2°C.” ⁣ - ❌ These priorities were central in previous reports—so why the shift? ⁣ ⁣ 🤔 As someone who follows ESG, I can’t help but worry. The UN’s NZBA had done an incredible job inspiring investors to value non-financial disclosures. ⁣ ⁣ 📢 𝐍𝐨𝐰 𝐭𝐡𝐞 𝐛𝐢𝐠 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧: Will this change slow down the progress we’ve made? ⁣ ⁣ #𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 #𝐄𝐒𝐆 #𝐂𝐥𝐢𝐦𝐚𝐭𝐞𝐀𝐜𝐭𝐢𝐨𝐧 #𝐍𝐞𝐭𝐙𝐞𝐫𝐨𝟐𝟎𝟓𝟎 #𝐁𝐥𝐚𝐜𝐤𝐑𝐨𝐜𝐤 #𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞𝐅𝐢𝐧𝐚𝐧𝐜𝐞 #𝐍𝐙𝐁𝐀 #𝐅𝐮𝐭𝐮𝐫𝐞𝐎𝐟𝐄𝐒𝐆