The transition to net zero will require substantial amounts of capital directed at decarbonizing the economy and enhancing adaptability to changes already in the system. 45% of banks, 48% of asset owners and 46% of asset managers are already aligning investments with a net zero carbon world, with 76% of financial institutions seeing opportunities in offering ESG-linked finance products and services.
By deliberately selecting and engaging with their portfolio companies, financial institutions can create a feedback loop that enhances the resilience of the global economy as a whole, going beyond climate change and navigating forthcoming ESG regulations. Opportunities abound for financing the transition to a responsible future, in the form of sustainability-linked loans, green and transition bonds, sustainable investment funds and insurance solutions.
Building green businesses starts today.