Climate change has become one of the main concerns worldwide. A concern heightened by increasingly frequent weather-related disasters affecting the entire planet, highlighting the need for all of us to take action to move decisively towards a decarbonised economy.
It is undoubtedly a concern for banks. Despite being a “low-emissions” sector, their role can be relevant by supporting other stakeholders in the efforts undertaken worldwide. Indeed, the aim of the United Nations Climate Change Conference (COP25), to be held in the coming days, is to bring positions closer on this collective challenge and to advance the objectives already signed, making them even more ambitious.
The importance of banks is determined by their very raison d’être. On the one hand, by efficiently channelling the necessary resources and promoting funds and financing for the energy transition, they act as a filter towards a more sustainable economic model. They also apply their expertise in measuring and managing risks, in line with regulatory changes that the authorities are already anticipating. These risks range from the deterioration of assets affected by weather events to transition costs arising from regulatory changes.
Banks are already behind the main environmental improvement projects. Sustainability and profitability are compatible. If the banking sector identifies, quantifies and prices climate risks, it thus becomes a facilitator of change. However, the transformation must be gradual, given the magnitude of the challenge we face. Together, we must make the future viable.
José Luis Martínez Campuzano, spokesperson for the Spanish Banking Association
