Financial institutions must take a greater role

Financial institutions must take a greater role

The German Ministry for Education and Research in cooperation with the Financial Initiative of the United Nations Environmental Program (UNEP FI) and the Sustainable Business Institute (SBI) conducted a study of whether and to what extent financial institutions are taking into account climate change risks when assessing their investments. The survey included 60 financial institutions from

The German Ministry for Education and Research in cooperation with the Financial Initiative of the United Nations Environmental Program (UNEP FI) and the Sustainable Business Institute (SBI) conducted a study of whether and to what extent financial institutions are taking into account climate change risks when assessing their investments.

The survey included 60 financial institutions from all continents and the basic conclusion is that the financial institutions try to include climate change in the assessment of risk investment, but they do not have enough knowledge of basic indicators on which would be based upon these estimates.

Because of this data, the study suggests that financial institutions take a leading role in promoting the Climate Change Study, reducing greenhouse gas emissions and promote efficient use of energy, primarily because the financial institutions have the ability to impose their clients to implement measures that will reduce the negative impact on the environment. An additional advantage is that financial institutions do business with customers from all industries and cover a wide geographical areas, so that the insistence on reducing the negative environmental effects of the financial institution can have instant and global action.

Financial institutions, which participated in the survey expressed interest in improving the analysis of credit risk by taking climate change into account. One banking group, which is present in Bosnia and Herzegovina, particularly potentiated the necessity of adopting “climate regulation”, according to which all financial institutions will behave in assessing the risks of climate change.

This means that customers of the group have to adjust their operations according to the instructions of the Ordinance, including Bosnian clients as well. It is projected that one of the main topics of the next meeting of the Climate Change Finance
Forum will be the development of climate regulation. The conclusions of the Forum will be presented at the Sustainable Energy Week, which will be held in April in Sarajevo.

Renewable Energy Projects in Bosnia and Herzegovina

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