Financial institutions are starting to see the “top-line”, money-making reality of delivering sustainability to corporate and retail clients…
says a new report from the United Nations Environment Programme Financial Initiative (UNEP FI). Recently released the report details green financial services and products and emphasizes the environmental, social and economic benefits of ‘green’ banking. The report highlighted that North American institutions aligned with green investing are poised to find a return that is both financially rewarding as well as a value fulfilling endeavor.
The report, Green Financial Products and Services: Current State of Play and Future Opportunities in North America” (PDF), was presented at UNEP FI’s summit in Melbourne Australia earlier this year. Asset management, corporate and investment banking, insurance, project finance and retail were all included in the research. Products like energy efficient mortgages (EEMs), substitute energy venture capital and eco-savings deposits were points of consideration.
‘Tangible benefits’ to institutions could include: improved market share, increased profits, customer acquisition and loyalty, higher employee satisfaction and retention (uh huh), and positive media attention.
Social Funds reported that the UNEP FI report found “financial institutions in the US and Canada have much to learn about green banking products and services, the report notes. They are behind European financial institutions that are blazing the green path.” But noted, “consumers can expect lots of new green financial products to come out in the market over the next six months.”
Some of the green finance products on the hot list include:
- green or energy efficient mortgages (EEMs)
- green home equity loans
- green commercial building loans
- green vehicle loans
- green credit and debit cards
- green fiscal funds
Although the financial institutions might be dragging on green moves, the market is there. According to a recent Yale pole, 75% of Americans acknowledge that their behavior can help reduce global warming, and 81% feel it is their responsibility to take action against this environmental challenge. Among top consumer choices are opting for renewable energy and considering an substitute automobile.
*UNEP FI is a global partnership between UNEP and the financial sector. Over 160 institutions, including banks, insurers and fund managers, work with UNEP to comprehend the impacts of environmental and social considerations on financial performance.
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