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Introduction To Sustainable Banking

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Shubham Singh
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60 views10 pages

Introduction To Sustainable Banking

Uploaded by

Shubham Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to

Sustainable
Banking
Sustainable banking is a growing movement that integrates
environmental, social, and governance (ESG) considerations into
financial decision-making. It promotes responsible lending,
investment, and operational practices to support a more
sustainable future.
Defining Sustainable
Banking
Environmental Social Responsibility
Sustainability
Ensuring fair and ethical
Reducing the carbon treatment of customers,
footprint of banking employees, and
operations and financing communities.
environmentally-friendly
projects.

Governance Transparency
Maintaining robust risk management and accountability practices.
Principles of
Sustainable Banking
1 Alignment with 2 Stakeholder
UN Sustainable Engagement
Development
Collaborating with
Goals
communities, NGOs, and
Committing to the global policymakers.
sustainability agenda.

3 Responsible 4 Continuous
Product Design Improvement
Offering financial services Regularly evaluating and
that create positive social enhancing sustainable
and environmental practices.
impact.
Environmental Impact Considerations
Climate Change Biodiversity Conservation Pollution Prevention
Mitigation
Supporting projects that protect Avoiding financing activities that
Financing renewable energy, natural habitats and ecosystems. contribute to air, water, or land
energy efficiency, and low-carbon pollution.
solutions.
Social Responsibility in
Banking

Financial Inclusion
Providing access to financial services for underserved populations.

Ethical Employment
Ensuring fair labor practices and promoting employee well-being.

Community Investment
Supporting local initiatives that address social and economic challenges.
Sustainable Lending and
Investment Practices
1 Screening and Due Diligence
Incorporating ESG criteria into the evaluation of loan and
investment opportunities.

2 Portfolio Optimization
Reallocating capital towards more sustainable and
impactful projects.

3 Monitoring and Reporting


Regularly tracking and disclosing the environmental and
social performance of the portfolio.
Green Finance
Initiatives
Green Bonds Financing renewable energy,
energy efficiency, and other
environmentally-friendly
projects.

Sustainability-Linked Loans Loans with interest rates tied


to the borrower's
achievement of sustainability
targets.
ESG Funds Investment funds that
prioritize companies with
strong environmental, social,
and governance practices.
Challenges and Barriers
to Sustainable Banking
Regulatory Uncertainty
Lack of clear and consistent policies to guide
sustainable finance.

Data Availability
Difficulty in obtaining reliable and standardized ESG data.

Risk Perceptions
Concerns about the financial trade-offs of sustainable
investments.
The Future of Sustainable Banking
Increased Regulatory Technological Shifting Investor
Alignment Advancements Preferences

Governments and policymakers are Innovative fintech solutions will Growing demand for sustainable
likely to introduce more enhance data collection, investment options, especially
comprehensive sustainable finance monitoring, and reporting from millennials and Gen Z.
frameworks. capabilities.
Thank You

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