Financing Net-Zero

I work in the financial industry and we have discussed in previous posts about the contribution the financial industry can and is making to a net-zero future by providing funding to sustainable initiatives in the form of instruments such as green bonds and green financing. In addition, to reduce their own risks and to ensure their business is sustainable, they are working with their large corporate customers on their net-zero transition plans. Both of these are key for financial institutions to stay profitable in a transition to a net zero economy.

The Wealth generated, in terms of profitability, actually follows the existing business models in place by nature of how Financial Institutions operate today. Having said that, there is absolutely an opportunity to generate additional business and wealth from the increasing demand for green financing. As Chao highlights, if there is a way of measuring the wealth that is created from the positive environmental and social impact green financing is creating, financial institutions are well placed to have an enormous contribution.

– Dave White, Australia.