Sustainable finance is essentially defined as lending and investment decisions by asset owners that consider the ESG impact of an economic activity.
Banks can lead the change by financing the right projects and empowering firms, society, and people who want to accelerate the green transition. And banks play a pivotal role – without their active participation, the path to a sustainable world and social equality will be more complicated, if not impossible.
- The UN-convened
Net-Zero Asset Owner Allianceis an alliance of around 70 financial institutions, including banks, fund management companies, and insurance entities, with more than USD 10 trillionin assets under management. The alliance has committed to transforming its investment portfolio to net-zero green house gas (GHG) emissions by 2050, consistent with what is required to achieve a maximum temperature rise of 1.5°C above pre-industrial levels.
- An exponential growth in…