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Closing the climate gap with the rise of green finance.

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TLDR:

Financial institutions are facing increasing pressure to disclose their environmental and climate impacts, including downstream risks related to the businesses they finance. Regulatory changes require organizations to report on both internal sustainability and wider impacts. Emissions disclosure is categorized by Scope, with Scope 3 downstream emissions being significant for banks. To address these challenges, a rise in green finance, climate finance, and nature finance is seen as attractive investment segments. The financial industry must rapidly scale up efforts to meet increasing climate finance needs and play a key role in addressing climate change and loss of nature.

Summary:

Financial institutions are now required to disclose their environmental and climate impacts, including downstream risks related to the businesses they finance. Regulatory changes are pushing organizations to report on both internal sustainability and wider impacts, with emissions categorized by Scope. Scope 3 downstream emissions are significant for banks, dwarfing their own emissions. The financial industry is facing growing challenges in monitoring and managing sustainability risks in their portfolios and disclosing their ESG-related performance. This has led to a rise in green finance, climate finance, and nature finance as attractive investment segments.

As climate tipping points are reached, the financial industry must step up its efforts to address the pressing challenges of climate change and loss of nature. Data plays a crucial role in this process, with financial institutions needing to provide verifiable evidence of how they are transforming their business activities to reduce internal and downstream impacts. The financial sector must rapidly scale up its efforts to meet the increasing climate finance needs and play a key role in addressing climate change and loss of nature.

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