Sustainability is no longer optional for organizations – it is an economic imperative. Financial institutions are committing to funding carbon reduction projects and initiatives to decarbonize their portfolios, demonstrating a clear link between carbon performance and the provision of capital and aligning this strategic decarbonization focus with similar interest from regulators, employees and society.
In an article for Metrus Energy, Chris Snyder, director at Guidehouse, discusses how large businesses and financial institutions embracing net zero transition affects the economy. Moving towards net zero will require a lot of private capital to fund upgrades. Financial institutions aim to support their borrowers’ and investees’ initiatives to reduce emissions, decarbonize their processes, and develop lower carbon business.
“The capital required to affect a net zero world is substantial and is a massive investment opportunity,” explained Snyder. “To this end, many financial institutions have announced sustainable finance lending and investment targets in the tens of billions of dollars level within the next decade or earlier.”