UNEP FI’s 17th Global Roundtable (GRT), a major global agenda-setting event on sustainable finance, will take place virtually on 10-14 October 2022. Held under the theme of “Transforming Finance, Accelerating Change”, this online event will bring together decision-makers, experts and thought leaders on a virtual event platform to help shape approaches to integrating sustainability across…
With reporting on climate goals well under way, lenders are starting to develop targets for the social pillar of their ESG strategies. Financial inclusion and, increasingly, financial health are focus areas. So far, 28 banks have signed up to a new UN Environment Programme Finance Initiative to promote universal financial inclusion and health. Data collection is a key challenge in this area, and something banks such as ING are working on. With fintech firms and challenger banks making inroads in the sector, established lenders must innovate to stay relevant.
Thirty of the world’s largest asset owners, with portfolios worth a combined $5tn (£3.8tn), have committed to cutting the carbon emissions linked to companies they invest in by up to 29% within the next four years.
Members of the UN-backed Net-Zero Asset Owner Alliance – which includes Aviva, the Church of England and the $400bn US fund CalPERS – will each set decarbonisation targets for 2025 as part of wider efforts to align their portfolios with the Paris climate goals and achieve net-zero emissions by 2050.
Former Bank of England governor Mark Carney has said banks should link executive pay to climate risk management, as part of efforts to align the finance industry with Paris climate goals.
Speaking at the UN Environment Programme Finance Initiative roundtable on Tuesday, the former central bank boss said lenders should – at the very least – be transparent over whether or not pay is being tied to climate targets.
Read UNEP FI Head Eric Usher in the 2018 Report of the Arab Forum for Environment and Development writing about ‘Mobilizing Finance to Achieve Sustainable Development Goals: UNEP Finance Initiative’s Perspective’. Download the report here.