In late October, the European Commission announced grants worth more than €380 million to more than 100 projects across Europe aimed at achieving the EU’s green targets, which once again underscored the growing importance of partnership between public and private sector actions in achieving the EU’s goals. Green. Ambitions.
The EU stressed in the run-up to the conference that the new collective quantitative target on climate finance “must recognize the need for a global effort to mobilize finance on a large scale from a wide range of sources, public and private, domestic and international.” “.
As European governments and policymakers increasingly look to the private sector to boost climate action and accelerate the green transition, Dutch multinational bank ING is one of a number of institutions that have answered the call in a decisive way. On September 19, ING announced, through its latest Climate Progress Report, that it will begin severing ties with clients that fail to meet climate impact reduction targets from 2026. What’s more, the Dutch giant is investing its money in… His rightful place, and is committed to stopping financing new oil projects after next year.
While the US banking sector’s integration of environmental, social and governance (ESG) considerations has come under intense political scrutiny amid a mounting “woke capitalism” backlash, ING CEO Steven van Rijswijk has put the company at the forefront of a more proactive European approach to the matter. . space. Indeed, leading innovators in the sector, from BNP Paribas in France, Vibank in Bulgaria to UniCredit in Italy, are lighting the way forward, driving investment in sustainability, social and economic inclusion, and cultural well-being to expand their societal contribution.
Igniting sustainable transformation
Reflecting on its headline-grabbing decisions, Anne-Sophie Castelnau, Global Head of Sustainability at ING, said: He explained The company believes that although the industry is not the “white knight who will save the world”, banks have a key role to play in the green transition.
Alongside enhanced monitoring of clients’ climate progress – facilitated in particular through its internal tool ESG.X – and assessment of the most carbon-intensive sectors, ING also supports the green transition on the ground. Last June, it teamed up with fellow Dutch company Kroonenberg Group to gift the municipality of Amsterdam more than 5,500 solar panels in honor of its 750th anniversary, which will generate more than 2,000 megawatts of clean electricity annually for public and community facilities across the city.
In Bulgaria, the country’s largest locally owned bank, First Investment Bank (Fibank), has embraced similar green energy ambitions as part of its long-term sustainability strategy. With the launch of its internal transformation in 2022, Fibank now meets 100% of its electricity needs from renewable sources, allowing the company to reduce nearly 8,000 tons of CO2 emissions last year alone.
Tseko Minev and Ivaylo Mutavchev, Fibank’s founders and majority owners, have been inspired by the bank’s expanding green agenda, which has seen it push forward with a range of innovative initiatives, such as replacing nearly 100,000 plastic debit and credit cards with new cards made from recyclable materials. in 2023 to help reduce the increasing plastic pollution.
Recognizing the need to make long-term progress on sustainability, Italian multinational bank UniCredit unveiled its “Skills for Transition” program in July, which will provide strategic training for young people and businesses to lay a resilient foundation for a greener future.
Make economies work for everyone
By sharing Unicredit’s focus on preparing the next generation, Fibank and ING put youth education and skills at the heart of their broader social impact agendas.
As part of its commitment to social and economic inclusion, Fibank participated in Children’s Financial Literacy Week last March, during which more than 5,000 students in schools across Bulgaria learned digital banking and budgeting basics vital to leading financially sustainable lifestyles. Meanwhile, ING Romania has significantly strengthened its work in youth engagement as part of a €5.2 million investment program in 2023, and launched a new partnership with Teach for Romania that will roll out leadership programs in financial health and resource management across a network of ten schools over the course of the year. Next. Two years.
The banking sector in Europe has also begun to take innovative steps towards building a more accessible and inclusive economy for people with disabilities. In support of the intended legacy of the Paris 2024 Olympic and Paralympic Games – which, incidentally, it promoted through the launch of exclusive themed debit and credit cards in partnership with VISA – Fibank is the first and only bank in Bulgaria to offer dedicated ATMs for people of short stature. . As the number of these modified devices increases, Fibank continues to enhance its ATM network with new functions to help people with visual impairment.
In a similar spirit, Unicredit unveiled a bold collaboration with Mastercard last April to upgrade its entire range of debit, credit and prepaid cards with Mastercard Touch Card and innovative, built-in accessibility features for people who are blind and visually impaired. Already available in Italy, UniCredit will gradually roll out 20 million of these new cards across the 12 countries in which it operates over the course of 2024 to help create a more inclusive society.
Providing culture to everyone
Unsatisfied with sowing the seeds of economic inclusion and equal access to the skills needed to thrive, European banks have emerged as important champions of culture, recognizing these intangible assets as a universal right and a critical factor in enabling well-being and social cohesion.
Through the “Dream Up” programme, French banking giant BNP Paribas gives children from underprivileged communities the opportunity to learn about and participate in a range of artistic activities. Leveraging its international presence and the significant resources of the BNP Paribas Foundation, the company delivered a comprehensive series of workshops and performances in music, visual arts and dance that spanned across four continents. Since its launch in 2015, the “Dream Up” campaign has reached more than 50,000 children, with BNP Paribas introducing the fourth edition of its flagship cultural initiative in January.
In Bulgaria, Vibank has similarly strengthened its wide-ranging patronage of the arts through strong funding support for the social program of the Bulgarian Actors’ Union, as well as providing theater scholarships for promising young actors from low-income backgrounds. Furthermore, UniCredit’s partnership with the Teatro San Carlo in Naples – the oldest opera house in Europe – offers a series of workshops and projects to give disadvantaged young people access to their cultural heritage as well as employment opportunities in the industry.
As these leading institutions demonstrate, European banks can be at the forefront of integrating ESG and redefining industry standards, proving that sustainable finance is not just a moral imperative but a strategic advantage. Going forward, their comprehensive efforts should serve as a role model for banks around the world, whose full strength will be required to unleash the sector’s potential to fuel a more inclusive and resilient global economy. As pressures from climate change and inequality become more urgent, it is time for decisive action.
Comments are closed, but trackbacks and pingbacks are open.