The word ‘green’ has become fashionable. Green bonds, green financing, and green awareness in general. But the expression, like the poem’s title itself, goes far beyond its literal meaning. It reflects the struggle that we all, as a society, must undertake against social and environmental risks. In this way, it encompasses both a short-term conviction and a future commitment. We are already feeling the effects of climate change, which demands prompt and decisive action.
The essential requirement for a ‘green’ qualification is that the funds obtained are allocated to an action that has a positive impact on achieving sustainable growth. But beyond money, this endeavor requires significant effort from everyone. Naturally, this includes the financial sector, which, as expected, plays a prominent role in the transition process that has only just begun.
The role of banks is twofold: as disseminators and from a financial perspective. Their role is key as project financiers, as ultimate investors, and as catalysts for third-party investment. They also face physical environmental risks and, further along, risks in the transition process towards a low-carbon economy. Authorities, legislators, and supervisors are focused on assessing all these threats to the financial sector. Governance must also adapt to this priority of steering the financing of change, involving all employees.
Naturally, there are also opportunities that our institutions cannot afford to miss. Banks have demonstrated their adaptability in the past, making the most of every scenario for the benefit of their clients. Although now, we all stand to benefit.
José Luis Martínez Campuzano, Spokesperson for the Spanish Banking Association
