Sustainable Banking Coalition’s Post

Credit cards rewards may be adjusted to incentivise more sustainable behaviours, suggests Prisca Ang, correspondent at The Straits Times. For instance, in Singapore, banks have long provided rewards for motorists who use petrol, but they are now also increasingly catering to electric vehicle (EV) drivers. Citing an expert she interviewed, Ang writes: “Credit cards can significantly influence consumer behaviour, and banks can play a pivotal role in facilitating the transition through incentives such as rewards for EV charging and discounts on green products and services.” How does credit card rewards influence your behaviour? Share your thoughts in the comments. #IOTD #sustainability #creditcards

✨ Excited to announce that on April 22, webinar will take place on the topic of "SUSTAINABLE BANKING AND GREEN BANKING IN UKRAINE: importance, features, difference" as part of the International Sustainability Webinars 2024. Given the evolving regulatory landscape, increasing investor demand for sustainability, and the urgent need to address climate change and environmental degradation, there is a clear rationale for organizing a webinar focused on sustainable banking and green finance in Ukraine. This webinar will provide a platform for industry experts, policymakers, and financial professionals to discuss key concepts, share best practices, and explore opportunities for advancing sustainable finance initiatives within the Ukrainian context. 💸 Our webinar aims to explore the concept of sustainable banking and delve into the specifics of "green" and eco-banking, highlighting their differences and importance within the Ukrainian financial system. Experts from various fields will discuss key aspects, challenges, and opportunities associated with sustainable banking practices, providing valuable insights for participants. Invite to participate in the upcoming webinar that will take place very soon! Register at the link⬇️ https://lnkd.in/ev6TTge4 📌 April 22, 2024 15:00 — 16:00 (GMT 3)

💳 🚗 Can a credit card spur sustainable behaviour? Your credit cards that come with petrol discounts might soon have more perks for EV charging and other sustainable products, as banks drive towards their net-zero commitments. Financial institutions have continued with long-running rewards for motorists who use petrol, but they are also increasingly catering to EV drivers. From 2030, all new car registrations here will have to be of cleaner-energy models, including electric and hybrid cars. Banks can align more closely with their sustainability goals by adjusting their products for individual customers to encourage the use of cleaner energy, observers told The Straits Times. When it comes to institutional and corporate clients, a few lenders have set out decarbonisation targets for sectors such as power, automotive, and oil and gas. Singapore Management University associate professor of finance Liang Hao noted that many motorists still rely on petrol, and until cleaner-energy vehicles become more widespread, banks need to continue supporting their current customer base. “Transitioning too abruptly could alienate customers and limit the effectiveness of sustainability initiatives." But he added that credit cards can significantly influence consumer behaviour, and banks can play a pivotal role in facilitating the transition through incentives such as rewards for EV charging and discounts on green products and services. NUS Business School professor Lawrence Loh said incentivising customer expenditure on fossil fuel products such as petrol needs to be “fundamentally relooked”, as the practice does not square with banks’ broader plans to decarbonise their portfolios. The issue needs to be addressed together with oil companies, he said. “But I think banks can actually make the first move. If one bank does not get into the picture (of offering petrol discounts), another bank will, so I think, collectively, some banks will have to set the standard.” Thanks to everyone who contributed to this piece! More in my story (paywalled):

The World Trade Organization spilled the beans: trade finance runs the show for 80-90% of global trade, and guess what? 🌍🤯 It's now dancing the digital tango! With trade being a wild, paper-stacked jungle, the risk of getting lost in the digital revolution is real. How can the fancy and organized data of #ISO20022 help navigate this chaos? Terry Hubert, the Trade Strategy leader at Swift, dished out how #ISO20022 can save the day, stressing the need for universal use and setting the course for standardizing trade. Dive into Terry’s insights in the FinExtra scoop here: 👉 https://okt.to/tNSvyJ #ISO #TradeFinance #TradeDigitisation

Fantastic news from the UNEP Finance Initiative - the Net-Zero Banking Alliance has now expanded to include 140 members from 45 different countries. This is a significant milestone for the Alliance, demonstrating the global commitment to driving sustainable finance and supporting the transition to a net-zero economy. The Alliance represents a diverse range of financial institutions, including banks, asset managers, and insurance companies, all working towards a common goal of aligning their portfolios with the Paris Agreement and achieving net-zero emissions by 2050. 🌍💼📈 It's inspiring to see such a strong and united effort towards sustainable finance. It's clear that the financial sector is increasingly acknowledging the risks and opportunities associated with climate change, and taking proactive steps to integrate sustainability into their business strategies. 🌱💰🔗 The Net-Zero Banking Alliance's rapid growth is a clear indication of the finance industry's commitment to playing a leading role in the global transition to a net-zero economy. This milestone is a testament to the industry's determination to drive positive environmental impact and support a more sustainable future for all. It's an exciting time for sustainable finance, and I look forward to seeing its continued impact in the years to come. #NetZeroBanking #SustainableFinance #ClimateAction 🌐🌿🌎

What strategies do Luxembourg's banks adopt to align their financial services with sustainable development goals and in what ways should Luxembourg-based banks incentivise their customers to adopt eco-friendly banking habits? Julien Froumouth, Sustainable Finance Adviser at ABBL, knows how banks can support the transition to a low-carbon economy.

Happy to share the first of our Mazars Green Taxonomy Sector Series - Banking💡 For banks 2023 marks the second year of publishing their European green taxonomy eligibility ratio🌱 The regulation requires banks to gauge the portion of financing allocated to sustainable economic activities using the Green Asset Ratio (GAR) publication The reports published in 2022 and 2023 cover a taxonomy “eligibility” ratio before progressing in 2024 to an “alignment” ratio calculation♻️ Our analysis reviews reports published from 2022-2023 concerning “eligible” GARs, from a panel of 12 banks located in the European Union👇👇👇 Mazars in Croatia Mazars in Slovenia Mazars in Serbia Mazars in Bosnia and Herzegovina #greentaxonomy #banking

The 'Single Market' report by Enrico Letta makes a strong case for the digital euro as a secure and privacy-compliant pan-European payment infrastructure. "Without a central bank digital currency supporting the European Single Market, the rise of new global systemic actors in the payment market risks marginalising European banks, disrupting their vital customer relationships, and weakening their overall competitiveness." "The groundwork for the digital euro's success is in place. It's imperative for the ECB and European legislators to rapidly advance the project. The ECB should work with all stakeholders in order to make sure that the technical realisation of this project is a win-win for existing actors, consumers, financial institutions and other relevant actors." The digital euro will provide a public answer that will lay the puzzle for a more integrated European retail payments market - together with private solutions. The important role of the private solutions and how they are not crowded out by a digital euro should not be given too little attention when advocating a single market. Read the report here: https://lnkd.in/eSSc6ewy

According to the World Trade Organization, trade finance is responsible for 80-90% of the world’s trade. And it’s undergoing a digital revolution. But trade is a complex industry, characterised by multiple transacting parties and paper-based processes, making the risk of fragmentation during this revolution high. How can ISO 20022's richer, more structured data help? Terry Hubert, Global Head of Trade Strategy at Swift, outlines the role #ISO20022 can play, the importance of global adoption, and the path forward for standardisation in trade. Find out more in Terry’s FinExtra article here: 👉 https://okt.to/EnGDu0 #ISO #TradeFinance #TradeDigitisation

Global Trade Finance gap grew to a record $2.5tn in 2022 from $1.7tn two years prior, according to Asian Development Bank (ADB), Growth and Jobs Survey published this month, incorporating data from 137 banks and 185 companies from around 50 countries. Although demand for trade finance surged post- Covid19 recovery, heightened economic risks left finance more difficult to secure. Gap may keep growing Access to adequate financing, reliable logistics and the use of digital technology were noted as the three most important components. The bulk of the trade gap is likely between and within Asia, Europe and the US, given the small size of trade finance markets elsewhere. Although the rate of adoption of trade finance may be greater in less developed markets, the gap stems from their outputs. For Banks and Fintechs, that’s where the focus lies. Pressures are near and present For the first time, the 2023 trade gaps survey focused on ESG issues, along with digitalisation, to assess their impact on supply chains and the trade finance gap. Most surveyed firms believe ESG alignment may help reduce the trade financing gap. As banks and investors look to reduce their exposure to carbon intensive industries, and as the transition to a net zero economy progresses, ESG financing pressures may pull the trade finance gap even wider. Digitalisation can close the gap A more streamlined approach could help close the gap that ESG efforts may initially leave open. Surveyed banks reported that sustainability progress is impeded by a lack of harmonised standards and data collection, along with reporting mechanisms for compliance. Less than 2% of global trade used electronic bills of lading last year. Two key objectives which underpin the digitalisation of global trade: - Change in the trading ecosystem - Enhanced government alignment Once global trade is successfully digitalised, the impact will be transformative. Kyzer Software is Building the Complete Trade Finance platform to shape the Future of Bank Customer – Bank Business – Regulatory Connect. Current efforts touches on the gaps of the transparency issues around bank processes / partnerships / regulators, client profiles, export / import data, operation inefficiencies, OFAC / sanctions / negative screening, anti-money laundering, trade-based money laundering, greater understanding around regulatory, financing and trade documentation. Transitioning trade from paper to digital forms should follow with Banks / Fintechs, expertise and process efficiencies, ensuring complete transaction lifecycle management encompassing all stakeholders across the ecosystem. https://kyzersoft.com #globaltrade #digitization #tradefinance #banks #fintech #tradegap #tradereport #processmanagement #kyzersoft