FINANCIAL SERVICES
“ Neobanks can ’ t improve the customer experience without understanding the broader financial end goals of each user ”
JEREMY GRINBAUM VP , EMEA , AMPLITUDE
Investors are recognising that companies with poor ESG practices may face significant risks and challenges in the long run , which could ultimately impact their financial performance .
As a result , there is a growing understanding that integrating ESG factors into investment strategies can contribute to long-term value creation and risk mitigation .
This realisation has led to a shift in mindset , with investors seeking investment opportunities that not only deliver strong financial returns but also align with their sustainability objectives .
John Stephens , Industry Principal , Banking and Financial Services at Workiva We continue to see indications from leading banks , including JP Morgan and Bank of America – two of the largest in the world by market capitalisation – that point to a commitment to facilitating billions of dollars , of not only bridge financing , but also direct financing , to address climate change and green initiatives .
Since 2021 , some of these leading global banks have financed and facilitated more than US $ 400bn toward sustainable development targets – this level of commitment and the amount of spending is expected to continue into 2024 .
Additionally , in 2024 , US tax equity could be the single most important financing market for the energy transition in the world .
The market is expecting demand for traditional tax equity from renewable energy projects to continue to outstrip supply , creating opportunities for corporations to purchase tax credits , either directly from the developers or from tax equity partnerships .
Ultimately , the financial services industry is anticipated to continue to integrate ESG strategies into mainstream initiatives , to not only manage risk or compliance , but also to transform business models to meaningfully contribute to net-zero initiatives , and account for complex externalities .
132 April 2024