‘Monitor, manage, and offset’: Behind the opportunities in the growing green finance market
- The rising demand for climate-conscious products is creating a new wave of opportunities for the financial sector.
- Climate-centric software enables banks to calculate and offset their carbon footprint.
Green finance offers new possibilities for financial providers to respond to their customers’ increasing climate awareness.
Consumers’ appetite for integrating sustainability within their financial lives is rising as climate change represents a major social challenge.
Strong environmental concerns from the generations of consumers that are stepping into their prime earning years, such as Millenials, or beginning their financial journeys, like Gen Z, have generated a wave of climate-focused opportunities for the finance industry.
What consumers are asking for is feasible. Research posted by Accenture back in May showed that 71% of US banks can monitor and assess their carbon footprint, and 67% are prepared to transition to a low-carbon economy by directing capital away from the energy sector.
Some banks and financial institutions have already started to look for eco-friendly products and services to appeal to these generations in an effort to remain relevant and solidify their relationship with their customers.
For example, payments fintech Stripe has been investing in carbon removal projects over the past two years. Mastercard revealed a carbon calculator back in April, highlighting the growing trend in eco-conscious spending.
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