Bankers turning toward green lending as climate risks rise

first_img FacebookTwitterLinkedInEmailPrint分享Bloomberg:Some of Europe’s largest banks are unveiling plans to lend and manage money in greener ways as pressure mounts to account for risks associated with climate change.“It is coming, it’s a trend that’s started,” said Louis Douady, head of corporate social responsibility at Natixis SA in Paris. “The intention is to adapt our balance sheet to climate transition, so clearly we want to have a change in our business mix.”Financial institutions are beginning to get on board with the global fight against climate change, a movement that was until recently the territory of non-profit organizations and environmentalists. Natixis, UBS Group AG and ING Groep NV are among lenders unveiling large-scale environmental finance and investing initiatives as central banks and regulators step up their warnings on climate risk.Natixis is working on a new color-coded indicator that will be applied to about 60 percent of its activities to encourage more climate-friendly business. The system, due to start by year-end, uses shades of green, brown or neutral to reflect a transaction’s risk weighting on the bank’s balance sheet. The greener the project, the lighter the risk.UBS recently introduced a sustainable investing strategy to its wealth management arm in Switzerland, the U.K. and the Asia Pacific region that has amassed more than 2 billion euros ($2.4 billion) from investors in the first six months of the year.“Demand for sustainable and impact investing has undeniably been on the rise in recent years,” said James Purcell, head of alternative and sustainable investments at UBS. “The game changer has been the realization that this investment strategy does not mean sacrificing returns.”More: Banks Pivot Toward Greener Finance in Climate Action Push Bankers turning toward green lending as climate risks riselast_img