The Paris Agreement, adopted in 2015, set a goal to limit the global temperature rise to well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the increase to 1.5 degrees Celsius. To achieve this goal, it is crucial to mobilize investment towards low-carbon, climate-resilient infrastructure and technologies. Banks have a key role to play in this effort.

Banks can drive positive climate impact by aligning their investments with the goals of the Paris Agreement. By financing renewable energy and energy efficiency projects, banks can support the transition to a low-carbon economy. They can also utilize their expertise to develop innovative financing structures that help accelerate climate action.

Climate considerations can be integrated into risk management practices to mitigate financial risks related to climate change. Banks can collaborate with regulators and policymakers to create effective policies and regulations that promote sustainable practices across all sectors of the economy.

Collaboration between banks is leading to the development of sustainable finance products and services to support low-carbon investments. Banks are committing to reducing their carbon footprint, both by transitioning to renewable energy sources and reducing operational emissions.

Incorporating climate-related risks into risk management practices is key for assessing the financial impact of climate change and developing effective policies and regulations. Banks play a crucial role in financing sustainable projects and helping clients transition to low-carbon economies in the fight against climate change.

Collaboration between banks, regulators, and policymakers is necessary to create a more sustainable financial system and mitigate climate risks. Leveraging technology and data can help banks measure and manage climate risk in lending portfolios and develop innovative financial products to support sustainable investments.

The financial sector can mobilize capital towards green investments and divest from fossil fuels to finance the transition to a net-zero economy. Prioritizing sustainability can lead to benefits such as increased customer loyalty, improved risk management, and access to new markets and investment opportunities.

Banks have a crucial role to play in the fight against climate change. By aligning their investments with the goals of the Paris Agreement, developing innovative financing structures, and collaborating with regulators and policymakers, banks can drive positive climate impact and create a more sustainable financial system.