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Financial Services' Contribution to Climate Change

It is indirect, the industry representatives used to say. Then the stories went to the difficulty to provide climate change- or sustainability-oriented mutual fund products as they underperform the main indexes. Finally, we have this payments related e-invoicing story which is to the point and of high importance!

But to really understand how Financial services can directly contribute into the fight against climate change, just consider paper. Banking and insurance is about everything on black and white. We know how paper is made. So get rid of paper. Principle is simple as that, implementation is not.

There is increasingly evidence about smart printing practices etc. However the story starts from banking processes. Paperless banking processes. And go even further; do paperless banking processes with Green IT. That means optimize your technical infrastructure from climate change perspective with energy efficient solutions.

Yes right, and who will pay that massive investment? And who will educate clients and personnel?  Not me or my bank. Well, we have the opportunity to reward those financial institutions who carry the responsibility and take action. Climate change is the strongest business driver ever seen. Its other name is survival. And paper is the no-brainer to start with today.

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Comments: (2)

Chris Barry
Chris Barry - V2 Innovations - Raleigh 03 November, 2009, 22:38Be the first to give this comment the thumbs up 0 likes

We should all get back to making business decisions based on hard facts and stop trying to twist the data to meet agendas -ie wealth redistribution, higher taxes, fake exchanges - carbon offset credits (can you say Enron).  Mis-representation of facts, exploitation, and creative accounting is part of what caused the financial crisis. Take reducing paper - there is a great cost savings business case there and it does not need the hype of "Climate Change" to sell the idea. If we become better with the usage of facts and ethical business practices we wont need the hollywood factor to sell our ideas and innovate.

Atso Andersen
Atso Andersen - Aalto University - Espoo 04 November, 2009, 10:18Be the first to give this comment the thumbs up 0 likes

Yes indeed, we have the cost savings argument for the reducing paper case. However, some of the stakeholders find it difficult to adapt to. They need the justification for it (other than save the money and let the bank make bigger profits). In fact the same applies to Green IT, which is just another expression for IT cost efficiency. To succeed with these we need to take stakeholders onboard. That is why climate change is the strongest business driver ever seen.   

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