While the details are technical, the implications are monumental. Banks, asset managers, and asset owners typically emit very little direct greenhouse gas from their own operations. By far, their biggest climate impact – and opportunity to improve – is through their lending and investing activities. A recent report from the climate nonprofit CDP
(formerly the Climate Disclosure Project) revealed that greenhouse gas (GHG) emissions associated with financial institutions investing, lending, and underwriting activities are more than 700 times higher than the emissions from their own operations.
By understanding the climate impact of their investments, the financial services industry will be able to align capital to sustainable business practices – funding the transition to a low carbon economy.