{"id":5569,"date":"2019-09-25T13:16:17","date_gmt":"2019-09-25T10:16:17","guid":{"rendered":"https:\/\/africasustainabilitymatters.com\/?p=5569"},"modified":"2026-01-11T05:30:33","modified_gmt":"2026-01-11T05:30:33","slug":"banks","status":"publish","type":"post","link":"https:\/\/rayscohosting.best\/ASM\/2019\/09\/25\/banks\/","title":{"rendered":"What Says Banks In Sustainability?"},"content":{"rendered":"\n

Many\nbanks still see sustainability as something they do in response to pressure\nfrom NGOs or to mitigate harm. They are far from immune to the growing scrutiny\nof corporate behavior and its wider impacts in the society- and they can use it\nas an opportunity to find new ways to stand out from their competition.\nBecoming a rusted bank, and creating an impact in the society are requirements\nfor a winning strategy. By standing for something bigger than what something they\nsell, tuning to customer\u2019s beliefs and taking decisive action, banks have the\nchance to cast their customer relationship and contribute positively to the\nsustainable development goals. <\/p>\n\n\n\n

One\nof the key drivers of financial caution in banking is lenders liability which is\nassociated with financial risks banks face when granting or extending loans.\nBanks and other lender rely on financial statements of companies when deciding\nwhether to grant or extending credits. They need to be fully and accurately informed\nabout decommissioning liabilities to avoid unacceptable high financial risks.\nUnder current reporting requirements, potential environmental liabilities can\neasily remain undiscovered unless a lender develops its own procedure to assess\nthe environmental risks. Therefore, some banks can end up spending the money on\nclean-ups of sites contaminated through their client’s activities.<\/p>\n\n\n\n

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The traditional approach of the banking sector to sustainability is often regarded as reactive and defensive|photo|banktack.org<\/figcaption><\/figure>\n\n\n\n

The traditional approach of the banking sector to sustainability is often regarded as reactive and defensive. However, several banks in Africa have recently adopted innovative, proactive strategies to capture the opportunities associated with sustainability. They have developed new services and products such as ethical funds or loans specifically designed for environmental businesses to capture new market opportunities associated with sustainability. <\/p>\n\n\n\n

Read also: To Embrace Sustainability, We Must Consider Social Media<\/a><\/p>\n\n\n\n

Intertwining\nsustainability in the core of the banking sector comes with a load of benefits.\nFor instance, support for the circular economy should be required when\nrevamping existing offerings and integrated into activities- particularly\ncredit analysis. Bans should also develop new businesses around the circular\neconomy, in areas like a circular supply chain; recovery and recycling; or\nsharing platforms new services such as (providing advisory services and\nfinancing for developing business in areas like renewable energy, water\nscarcity and resource efficiency). <\/p>\n\n\n\n

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Banks focus on sustainability should go beyond facilitating the issuance of green bonds and extend to integrating sustainability dimensions|photo|cc.com.nt<\/figcaption><\/figure>\n\n\n\n

Banks\nfocus on sustainability should go beyond facilitating the issuance of green\nbonds and extend to integrating sustainability dimensions into project\nanalyses, and helping businesses learn how to comply with environmental, health\nand worker safety regulations. Additionally, financial inclusion should go\nbeyond providing low-cost services, to include providing financial education\nand services to lower customer segments using an open banking model. <\/p>\n\n\n\n

Sustainable\nbanking also involves the notion of the \u2018client’ to include governments and\norganizations. Indeed, banks are best positioned to use their wealth of data to\nprovide the government with insights into spending patterns, returns on\ninvestments, impacts on the target audience, identification of fraud, tax\navoidance and many more.<\/p>\n\n\n\n

Today\npeople want the organizations they do business with to make a positive\ndifference in the world. So, the time is right for banks to start thinking\nabout how the can apply an ecosystem strategy and collaborate with governments,\nindustries, and FinTech to broadcast their social purpose to a wider audience\nand achieve a sustainable world. <\/p>\n","protected":false},"excerpt":{"rendered":"

Many banks still see sustainability as something they do in response to pressure from NGOs or to mitigate harm. They are far from immune to the growing scrutiny of corporate…<\/p>\n","protected":false},"author":7,"featured_media":5572,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","pagelayer_contact_templates":[],"_pagelayer_content":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[89],"tags":[],"class_list":["post-5569","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-responsibility"],"_links":{"self":[{"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/posts\/5569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/comments?post=5569"}],"version-history":[{"count":0,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/posts\/5569\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/media\/5572"}],"wp:attachment":[{"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/media?parent=5569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/categories?post=5569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rayscohosting.best\/ASM\/wp-json\/wp\/v2\/tags?post=5569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}