The financial industry has had a critical and exemplary role to play to tackle the immense challenges of climate change, which explains why actually sustainable finance has become a driving force of this industry. However, the current pace of transition is too slow and the cost of inaction is too high.
In a recent podcast recorded on the sidelines of COP26 in Glasgow, Constance Chalchat, BNP Paribas Head of CIB Company Engagement & Global Markets Chief Sustainability Officer, spoke to Lucy Fitzgeorge-Parker, euromoney ESG and Emerging Europe Editor, on why finance is a key lever to accelerate transition, and five priorities for the financial industry:
- The first one is to enable the implementation of the low-hanging fruits, such as energy efficiency and digital & plastic sobriety, by removing the financial hurdle to implement existing solutions.
- The second priority is to accelerate the transition by bringing forward the tipping point at which green technologies are more affordable, more accessible than fossil fuel.
- Thirdly, the transition must be just, enabling people to continue to work, care for themselves, heat their homes and move around; and without leaving countries, communities or companies on the side of the road.
- The fourth priority is future proofing the planet. We need to invest today in research & development to create the technologies required to live in a low carbon world by 2030-2040.
- The fifth priority is to protect and reinvest in our natural capital and reverse deforestation by 2030, if not 2025.
Finance has a central role to play in these priorities by channeling capital to investments that have real positive impact.
