IN 100 WORDS
The global banking sector has recently transformed with the rise of sustainable banking, driven by increased awareness of environmental, social, and governance (ESG) factors.
Sustainable banking integrates ESG factors into banking decisions like lending and investing.
Banks develop sustainable finance frameworks to evaluate companies and projects based on ESG criteria within themes like clean energy, affordable housing, and education.
Sustainable banking tools include green loans, social bonds, and innovative instruments incentivizing sustainability transitions.
Tip: By aligning practices with ethical principles while maintaining profitability, sustainable banking redefines how banks operate.
Anastasia Kuznetsova
Finance & Treasury Professional