It’s hard to look at anything these days outside of the prism of the environment.
The financial services sector is coming around to putting the environment near the top of the agenda. Major financial institutions like JPMorgan Chase and Citigroup have made commitments to become carbon neutral and the Net Zero Banking Alliance includes firms like Barclays, HSBC, and Bank of America. According to the UN’s 2021 SDG Report, the average annual spending on climate finance is about $48.7 billion.
FIs are getting the gospel of green finance and acting deliberately to change their business practices to make them more sustainable. Morgan Stanley, JPMorgan Chase, and Citigroup have all said they won’t fund arctic refuge oil drilling. An increasing number of lenders and investors are making decisions in accordance with ESG criteria.
This move towards green finance isn’t lost on fintech firms, either. Many are partnering up with incumbent financial firms to neutralize carbon emissions and accelerate their move toward sustainability.
All these efforts are being met by consumer demand for environmentally-friendly products and services. Younger generations prefer to do business with companies that share their own values, pushing the industry towards exploring new green products and services.
Green finance speaks to the future of financial services.
Tearsheet is launching the Green Finance Newsletter to cover the news and analysis surrounding the move toward environmentally-oriented financial services.