Climatic change has turned into an issue of concern for almost every financial institution alongside the drive for environmental sustainability. Be it out of a catalyst such as extreme weather or a mere 2020 resolution; there has been a notable change on this issue by financial institutions. Many have stepped up to publicize their concern for environmental change and degradation.
Such complaints came up into the attention of the public when 631 institutions under a union entrusted with over $37 trillion assets worth of value presented the united nations climate conference with a joint statement. The joint statement was a call to governments to wake up and tackle the environmental change to realize the Paris agreements objectives. While different players in the financial sector clamor for a position just to be heard, the problem is growing huge.
One of the biggest problems that have hit this action is the absence of action. Politicians are presenting an image of something that is underway while there is little or no action being taken. All that is being presented is accretive PR and clever accounting with literally no action on the ground. This raises an essential question on the motive behind financial institutions raising the issue of climatic and environmental crises.
Many like global environmental executive Alex Liftman agree that tackling the problem of climatic change goes beyond usual business. It needs a shift in operation strategy and shifting to use of innovative and working strategy to handle environmental and climatic crisis that has gripped the world. There are, however, banks that have managed to achieve this objective, such as the bank of America, which achieved its set objectives and focuses on achieving more by 2030.
The key to tackling climatic change is understanding how it will affect the world and the global systems and then building solutions from the same. Failure to embrace this cause is likely to bring in a financial crisis that will see the closure or clashing of many financial institutions when the levels get to extreme. These financial institutions will need to focus on considerable investments in this area to curtail the extent of climatic and environmental change.
Carbon neutral status is a mark that every organization in the finance field needs to have in the coming years. It will be a lead on the compliance with the goals or governments, public nongovernmental organizations, among other groups that they serve. This status will be an indicator of commitment to delivering not only for the profits but also for the good of the entire world.