This article discusses how financial institutions are becoming more aware of the financial impact of climate change.
Some of Europe’s largest banks are unveiling plans to lend and manage money in greener ways as pressure mounts to account for risks associated with climate change.
“It is coming, it’s a trend that’s started,” said Louis Douady, head of corporate social responsibility at Natixis SA in Paris. “The intention is to adapt our balance sheet to climate transition, so clearly we want to have a change in our business mix.”
Financial institutions are beginning to get on board with the global fight against climate change, a movement that was until recently the territory of non-profit organizations and environmentalists. Natixis, UBS Group AG and ING Groep NV are among lenders unveiling large-scale environmental finance and investing initiatives as central banks and regulators step up their warnings on climate risk.