A green bank is an institution that offers its customers a variety of financial products that focus specifically on projects Climate mitigation, such as renewable energy programs, reforestation and energy efficiencyamong others.
While the world continues to fight against economic, social and public health crisis, Green Banks work to guarantee a recovery that is sustainable, resilient and equitable. But not all who say green, actually meet the objectives set out.
Many banking institutions are shielded in offering certain ‘products’ that are sustainable and/or green, to have the excuse of self -proclaiming green benches, although they do not meet other requirements of much greater weight, to be. And this is what is happening in Latin America (and in practically everyone), although there is a real effort to achieve it, according to recently published reports.
What about banks in Latam?
The World Nature Fund recently pointed out that 96% of Latin American banks offer to Less a “green” product, but only 9 % have committed to the zero net emissions goal.
In a statement issued by the organization, it was reported about the results of the pilot applied to Latin America of the sustainable banking evaluation (Sustainable Banking Assessment, itsba), which, he said, “shows advances in the field, but also Evidence critical factors and that must be addressed in sustainability issues«.
He indicated that in the analysis he evaluated 22 leading banks from six countries in the region: Bolivia, Brazil, Chile, Colombia, Mexico and Peruconsidering their public reports regarding environmental and social criteria (E & S, in English), through six thematic pillars.
The organization said that what is revealed in the report «is Una solid base regarding consciousness on sustainability in the region«. However, “important gaps persist in the integration of E&S in their business models and risk management systems.”
He explained that although 96 % of banks offer at least one “green” product, “only 9 % have committed to the zero net emissions goal, and the Financing related to nature remains mostly unattended«. In addition, he pointed out that “no bank demands deforestation -free commitments to its customers.”
«Banking in Latin America is in a strategic position to lead the transformation towards inclusive and sustainable development«, Said Jessica Villanueva, senior manager of sustainable finance for Latin America and the Caribbean for the International NGO.
However, «for this to be possible, it is crucial to accelerate efforts to Close the sustainability gaps, improve transparency and accountability and prioritize the integration of nature risks in financial decision making for the protection of biodiversity ». The financial sector of Latin America, said the study, “plays a fundamental role and must strengthen actions to address interrelated crises of climate change and loss of biodiversity.”
In addition, its analysis highlights a wide variety of sustainability practices between banks and highlights four main trends: Latin American banks need to address the risks related to nature and establish policies and systematic reviews of their portfolios. He also stated that there are few commitments on having zero net emissions, and establishing goals based on science and lack of integration of E&S aspects in policies and commitments to customers.
In addition to the Green financing offers are common, an area in which the region stands out, “but it is still necessary to improve the scope and training for the actors in the average and low market«. The yield per country according to itsa (average score per country over 100) is: Mexico, 53; Chile, 50; Brazil, 40; Colombia, 40; Peru, 37; Bolivia, 24.
The study indicated that the banking sector in the region has advanced in the adoption of sustainability strategieswith an average 84 % compliance according to theirba and that the risks related to nature, such as deforestation and loss of biodiversity, are little addressed, with a compliance between 0 % and 28 %. EFE / ECOticias.com