Opportunities Through Positive Impact Investing and Finance Embedded in Banking Value Chains
As a result of external pressures and internal adjustments, Banks have started to consider sustainability in their value chains. What started with a focus on internal processes, use of materials and energy consumption, has now developed into a sophisticated system which considers Environmental, Social and Governmental (ESG) criteria. Structures like the Equator Principles and Sector Policies helped banks to place an even higher emphasis on sustainability. After all, they can influence issues like climate change, poverty and labour rights significantly by evaluating their borrowers’ sustainability practices. The current sustainability efforts of banks are only sufficient, if they do embed sustainability in the core business. While voluntary standards helped to raise the bar real juice is on the opportunity. The real opportunity is to apply sustainability through positive impact financing. Banks are uniquely positioned to move from financing the economy to financing positive impacts and shared value creation.
KeywordsSupply Chain Financial Institution Social Responsible Investment Initial Public Offering International Energy Agency
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