But today , institutions are at a crossroads with how best to implement their net zero initiatives . “ There are two paths ,” says Dr Alexander . “ Either a reactive path , on which business-as-usual is continued with a focus on mere compliance while crucial investments are delayed , or a proactive path , which entails embracing a leadership role , systematically assessing climate-related risks and adjusting operations fundamentally .
“ The latter not only secures long-term growth and resilience but also positions institutions to lead in the transition to a global net-zero economy .”
It ’ s clear to Dr Alexander that choosing a proactive path and following
a transition plan is not just important , but crucial for future-proofing operations .
Indeed , financial services providers must avoid accusations of greenwashing too .
“ Choosing the proactive path to net zero creates long-term resilience and growth for financial institutions – and is thus the only viable option ,” he adds .
Why banks must take a leading role in the energy transition Of course , banks that delay the adoption of credible transition plans will not only be exposed to future risk but also sit at a competitive disadvantage . That ’ s because the institutions that do take a lead in transformative change will have
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