Finance’s role in sustainability
2020 has seen public sentiment rise for more sustainable practices, and they’re looking to brands to help make change possible.
For brands such as Doconomy, that responsibility starts with their customers. They see it as a responsibility to help customers lower their carbon consumption through their purchase habits. That’s why their credit cards have carbon limits as well as spend limits, as defined by world leaders under the Paris Agreement.
But beyond retail banking, Investment banks are supporting the rise of sustainable funding. Investors, and the clients they represent, are now pushing the demand for more environmental-friendly and socially-conscious ways to invest. With big banking so often seen as the real obstacle to change, perhaps now the green tide is turning.
With investment motivations moving towards more sustainable practices, brands in this space are seeing themselves responsible for pushing the ESG (environmental, social & governance) agenda.
This year saw the launch of HSBC’s ESG solutions division, advising on $22.6bn worth of deals in the UK alone since the start of 2020 – all part of the bank’s commitment to a net zero practice by 2050. At the same time, JP Morgan is committing to align its financing goals with that of the Paris Agreement, stopping its financial support of coal-based companies and pledging $200bn to green businesses.
And with Citi Group’s CEO claiming the pandemic is simply a dress-rehearsal for a more destructive climate change crisis, it seems that at last, big banks are preparing to be the catalysts for change that many consumers hope they can be.