EDITOR ' S LETTER
FINANCE NEEDS TO REEXAMINE ITS COMMITMENT TO SUSTAINABILITY A recent report from Greenpeace and WWF found that the UK banking industry contributed over 805 million tonnes of CO 2 in 2019 through financing high emission ventures , a figure almost double the 455 million tonnes that the rest of the country produces annually .
“ it is not unlikely that [ customers ] will migrate away from companies that do not share their own values ”
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Furthermore , it was found that if the UK ’ s financial services sector was a country it would be the ninth most polluting in the world , ahead of Germany ( 776 million tonnes ) and Canada ( 763 million tonnes ). This dilemma is underscored by the UK Government ’ s desire to show leadership in sustainability as it chairs the 2021 COP26 summit .
Both the WWF and Greenpeace suggest the time for “ voluntary pledges ” has passed and that more stringent regulations are needed to meet the Paris Agreement ’ s target global average temperature rise of 1.5 ° C . With finance ’ s status reportedly comparable to the oil and gas , aviation , and transport sectors , this is certainly a defensible position .
It should also be noted that digitally focused fintechs in the space have already made significant progress , one of the most notable being Finastra . Having recently partnered with Climate First Bank to help it provide eco-conscious investment programmes , the company is exemplifying a ‘ finance for good ’ mentality that encompasses ESG at every level .
As customers become increasingly cognizant of finance ’ s role in tackling climate change , it is not unlikely that they will migrate away from companies that do not share their own values . This means an end to the practice of ‘ greenwashing ’ is imperative from both a business and environmental perspective . Now more than ever is the time to take action and lead the change .