Elyse Vaughan’s Post

It is time for banks to double down on climate and sustainability action. This is the key take away from the conversation with Amine Benayad, who leads Climate and Sustainability business for Financial Institutions Practice globally. For many reasons including the latest political developments, the world of Financial Institutions has lost a bit of its enthusiasm for climate action. Amine is a true believer and passionate campaigner for climate action through the power of finance.  Amine highlights that FI need to double down on climate and sustainability business now irrespective of the political climate. The risks emanating from climate change are real and sooner or later regulators will insist on climate risks to be an integral part of decision making in every process of the banks. This is a humungous exercise that better be done while we are not in a crisis mode. Further, with rapidly changing climate conditions, the business world will need to invest to adapt to new climate conditions. FI need to learn how to finance these new initiatives to help the industry transition, to adapt, and to thrive in a new climate context. This will be BIG business. These are new skills and those who invest now will have a competitive edge. #Sustainability #ClimateFinance #FutureOfWork #BankingInnovation #BCGInsights

One of my key recommendations to any organisation looking to reduce their emissions is always to look at who they bank with. This can be a relatively easy & impactful change to make 💡 Today's edie article is a stark reminder that we still have a long way to go in turning around the banking oil tanker: https://lnkd.in/eJwMpbf6 'Environmental organisation Bank.Green has ranked more than 100 banking institutions in the UK based on their climate impact, uncovering that some of the banks prominently advertising their environmental concerns are among the most detrimental offenders.' 'The report unveils a discrepancy between perceived climate advocacy and actual environmental impact, as some banks that are vocal about their support of sustainability initiatives are found to be linked to the banks that significantly contribute to the climate crisis.' On the positive side, Triodos, the Co-operative Bank and Metro Bank all received high scores based on their proactive measures, including explicit policies against financing fossil fuels or business models inherently resistant to such investments. Interestingly, the report also calls out transparency issues among UK building societies, pressing them to disclose their banking partners to prevent unwitting support for institutions with poor climate performance. If you haven't seen it before or just want another prompt for action, this video from Make My Money Matter is a brilliant provocation: https://lnkd.in/ekfiF6S3 Have you voted with your £££s and made a banking switch? #BankGreen #Banking #Banks #Bank #MakeMyMoneyMatter #Finance #FinancialReductions #FinanceEmissions

#Winnam - Nearly 60 per cent of banks allocate less than 5 per cent of their lending to climate-related investments, while over 25 per cent do not offer any climate financing options at all in Emerging Market and Developing Economies (EMDEs). A new World Bank report released yesterday described the limited climate financing of banks in developing economies as a significant concern, making them unlike in advanced economies where the financial sector is more diverse and resilient. https://lnkd.in/dUPfSYZ2

💡 #Top #banks with strong #climate #rhetoric show #low #sustainability #performance, research finds 👉 The world's largest financial firms provided $740 billion to the fossil fuel industry in 2020 and 2021. 👉 Despite claims of sustainability and climate advocacy, many of the world's largest financial firms continue to provide significant funding to the fossil fuel industry. There is a discrepancy between their public statements and their actual environmental impact. 👉 An increased focus on holding financial institutions accountable for their environmental impact is essential. There may be greater pressure on banks to align their portfolios with climate goals and to provide more transparency in their financing practices. #stricter #regulations and #standards #Mittal, #Sidhi. (2024, April 25). Top banks with strong climate rhetoric show low sustainability performance, research finds. Edie. https://lnkd.in/dByJd5Z8 https://lnkd.in/dByJd5Z8

📢 Banks dominate the financial sector in developing economies, yet they still struggle to tackle climate-related risks and bridge climate finance gaps. ➡ Green lending is not yet on the radar screen of banks: - 60% of banks allocate less than 5% of their lending to green; and - 30% of banks provide no climate finance at all. ➡ Banking authorities are making good progress, but it is still early days: - they are strengthening their supervisory approach and guidance to the industry; - they are experimenting with tools like directed lending and green financing facilities; and - they are enhancing climate disclosure, data, modeling, and green taxonomies. ➡ Authorities should be careful to avoid unintended consequences, including: - “greenwashing”; and - undue interference with their primary mandates. So what can banking authorities do? Read about it in our latest blog:

Three of the largest U.S. financial institutions – Morgan Stanley, Citigroup, and Bank of America – have recently withdrawn from the Net Zero Banking Alliance (NZBA), a UN-backed initiative aimed at aligning the financial sector with climate goals.

Net Zero Banking Alliance No More The announcement of #GoldmanSachs’ decision to withdraw from the Net Zero Banking Alliance (#NZBA), a cornerstone of global #climate action in the finance sector, is a sharp reminder of the shifting tides in U.S. climate politics. This move, amid mounting pressure from #Republican lawmakers who accuse financial institutions of prioritizing environmental goals over financial performance, signals the growing influence of a doctrine increasingly hostile to climate action. Republican-led criticism has centered around portraying climate-focused initiatives as a threat to economic freedom, dubbing them "woke capitalism." This narrative is gaining traction as conservative policymakers scrutinize and push back against #ESG frameworks. Such rhetoric not only challenges climate-forward strategies but also creates a chilling effect for institutions trying to align with global #sustainability goals. Goldman Sachs' departure from the NZBA reflects the financial sector’s precarious position, caught between the demand for immediate returns and the moral imperative of addressing climate change. This decision risks emboldening other institutions to deprioritize climate commitments, especially as political resistance intensifies. It underscores a troubling trend: the increasing politicization of corporate climate strategies in the U.S. and the growing sway of negationist doctrines within conservative circles. #esrs #efrag #csrd #csddd #sfdr #reporting https://lnkd.in/dX2SJuWQ

Last week, over 50 economists and green thought leaders wrote to Andrew Bailey, Governor of the Bank of England, calling for the bank to step up its work to align the financial sector with climate goals as a matter of urgency. The letter warns Bailey that the Bank risks lagging behind its international peers on supporting low-carbon industries and adequately preparing for systemic risks linked to the climate crisis. The letter urges Bailey to do more to build upon the Bank's top-line commitment to address its financed emissions and legally binding targets whilst working with the Government to unlock finance for both the low-carbon transition and levelling up. Read the full letter: https://lnkd.in/dXSxWfEh Positive Money Fran Boait Jesse Griffiths Steve Coulter Michael Weatherhead Mick McAteer Dr. Steve Keen James Meadway Kjell Kühne Katie Kedward Peter Sweatman Christine Cooper Catherine Howarth OBE James Vaccaro Hugues Chenet Josh Ryan-Collins Tony Burdon Brett Scott Ann Pettifor Karen Ellis Paul Schreiber Hannah Bond Sarah Edwards Nicki Harrison Daniel Beunza Monica DiLeo Lydia Marsden Climate Safe Lending Network ShareAction Greenpeace Green Alliance

Climate change stands as one of the most pressing challenges of our era, demanding an urgent and comprehensive shift in how economies operate and develop. In this context, banks emerge as critical agents capable of steering financial flows towards sustainability. The complexity of this role encompasses economic, ethical, and practical dimensions, and it invites an exploration of how banks can effectively contribute to combating climate change. Check out this article to explore how by adopting a proactive and responsible approach, banks can safeguard their long-term viability and play a pivotal role in shaping a resilient and sustainable global economy. https://lnkd.in/eQfx3fSJ #Finance #Banking #Sustainability (All opinions are my own)

This blog raises an important issue at the intersection of finance, climate change, and policy, but it could benefit from deeper exploration of the motivations and implications behind these banks’ decisions.