How can sustainability create value for financial services providers?

COP 26 has ended. Now the responsibility to act rests upon policymakers and businesses alike. This includes financial services providers who now are tasked with rethinking their business models to offer sustainable value by shifting towards greener value propositions.

But it doesn't end there: for large-scale climate action, consumers also need to be part of the solution. Despite a fast-closing window of opportunity, the worst effects of the climate crisis can still be averted.

On Nov. 22, three thought leaders from the areas of sustainable banking, payments and climate metrics gathered to dive deeper into what the new imperative in sustainable banking and finance means.

“Every aspect of our lives needs an upgrade,” said David Lais, co-founder, and CPO of ecolytiq. “The way we live, how we transport, what we eat – basically everything needs a closer look to see how sustainable it is.”

In a panel discussion, David Lais was joined by Dr. Sebastian Müller LL.M of right. based on science and Sébastien Mandron of Worldline to discuss the role green banking plays in generating sustainable value.

The status quo is not future proof for banks and financial institutions. Change is needed at all levels of society to cause the level of transformation needed to tackle climate change.

And according to David, look no further than the banking and finance industry to lead that change:

“What is the finance industry made for other than managing those funds and investments? It is at the center of this change and of these upgrades.”

Upgrading climate action

After a year of punishing climate catastrophes, from devastating floods in Germany to sweltering wildfires in Greece, urgency on environmental protection has never been more prominent. And action never more essential.

Yet, despite the urgency, as Dr. Sebastian Müller LL.M explains, climate discussions are often bogged down by insignificant nuances that lose sight of the big picture.

“While we continue to debate trivial and meaningless things, further windows of opportunity will close,” he emphasized. “With every tipping point crossed, uncertainty around how climate change will hit will be bigger, making it harder to control.”

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COP26 took place in Glasgow, Scotland this year, with nearly 40,000 attendees - the most ever to attend a climate COP event.[/caption]

Emission reduction strategies must, therefore, always be at the center of the conversation. The best way to start? Secure transparency on your emissions.

Whether that be in the form of carbon footprinting or temperature metrics, the more information you have, the better.

New approaches to creating sustainable value

In a world of new government regulations, digital disruptors and shifting customer demand, financial services providers will need to adapt by creating sustainable value.

Meeting these challenges is a tall order. It will require innovative technological upgrades in all sectors; it will also require a new mindset from banks and financial institutions to engage with these new tools at our disposal.

Many of the sustainable tools that financial services providers need to engage with the business of tomorrow are already here today.

Meet some of the innovators creating this sustainable value at this intersection of climate action and financial services. Dive deeper with the full panel discussion here.

https://youtu.be/H1N6KMDzo6k

Authored by Max Honzik, PR & Content Manager at ecolytiq

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