To accomplish net zero by 2050, banks need to take action. In this blog, we explore how.
Consumers and governments are putting increasing pressure on financial institutions to take climate action.
Consumers are demanding banks stop investing in assets linked to fossil fuels and deforestation. And many are asking for the first time, “How sustainable is my bank?”.
Regulation around sustainability reporting has also gained momentum. The mandatory ESG (Environmental, Social, and Governance) reporting requirements and political pressure around carbon mitigation have affected the banking industry.
The urgency for banks to take action is increasing. Banks need to adopt sustainability in their processes and operations and commit to achieving net-zero by 2050. But how can banks drive emissions down? Keep reading to find out.
Put simply, ‘net-zero’ means that the total greenhouse gas (GHG) emissions of an organisation (or city, or country) are equal to or less than the emissions it removes from the environment.
First, banks need to get clear on their sustainable strategy and develop an action plan to deliver it. It’s important to determine the business model and tech required to achieve the sustainable goals, define a value proposition, and examine the company culture to identify how best to embed sustainable initiatives across the business.
The world needs trillions of pounds of investment to meet the goals of the Paris Climate Agreement. This investment needs to be financed by banks. So a core part of banks’ sustainable strategy needs to involve investing in funds that help advance innovative carbon-efficient technologies and supply chains.
Banks will need products and processes to support green investments and initiatives, such as Green Loans, Green Project Finance and Green Bonds.
Businesses can reduce paper waste and carbon emissions by digitising operations, this helps to reduce costs as well.
Banks can also empower their customers to make sustainable changes by integrating carbon tracking and giving customers insight into how their spending impacts the environment.
Partnerships with sustainable experts is crucial for banks on their journey to becoming more responsible.
Cogo is all about finding solutions to help businesses and consumers better understand their contribution to climate change.
Our API solution enables customers to measure, reduce and compensate for their carbon footprint. Using credible data mapped to specific spend categories, you can empower and ethically 'nudge' your customers to take real action and reduce their carbon footprint. We can build all of this into your own digital ecosystems and brand identity.
If you’re looking for a sustainable business solution, and you want to be on the right side of history, alongside some of the world’s biggest banks, then get in touch today.