The Banking Industry's Role in Climate Change Mitigation and the Transition to a Low-Carbon Global Economy

Bowman, Megan

doi:10.2139/ssrn.1717293

Cited by 9 publications

(13 citation statements)

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“…The value that can be derived from Green Banking has been summarized by IFC as the avoidance of negative environmental impacts and the achievement of environmental positive impacts in core financing activities (IFC, 2015). The adoption of Green Banking can protect the banks from a number of risks including credit risk, legal risk, reputational risk and environmental risk (Bowman, 2010; Nath et al, 2014; SBP, 2015). It can be a source of competitive advantage, especially for banks in the developing countries where the concept has not been adopted or is in the initial adoption stage.…”

Section: Literature Reviewmentioning

confidence: 99%

The Journey of Pakistan’s Banking Industry Towards Green Banking Adoption

Bukhari

Hashim

Amran

2020

South Asian Journal of Business and Management Cases

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Green Banking adoption has gained momentum in the past few decades in both the developed and developing economies. The green movement in the banking sector has been triggered due to its potentially adverse role in global natural environmental degradation and natural resource depletion. A number of banking operations have the potential to harm the natural environment, both directly and indirectly. Due to this, many countries have started working on greening their banking sectors. Pakistan is among the top countries threatened by climate change, environmental degradation and resource depletion. The country is currently at the initial stages of Green Banking adoption. This case study follows the Green Banking adoption journey of Pakistan’s banking industry in light of the obstacles faced, milestones achieved and the learning outcomes for the other developing countries struggling from environmental degradation. This case study can serve as a learning tool for the regulatory authorities and other concerned stakeholders of developing economies in need of Green Banking adoption.

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Section: Literature Reviewmentioning

confidence: 99%

The Journey of Pakistan’s Banking Industry Towards Green Banking Adoption

Bukhari

Hashim

Amran

2020

South Asian Journal of Business and Management Cases

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“…Banks can also contribute to the problems of climate change. The three major roles played by the banking industry that relate to climate change include the capital providers, risk assessors and shareholders (Bowman, 2010). As the capital providers, banks have the power to supply or facilitate financing for GHG-intensive projects as well as to support clean energy initiatives.…”

Section: Review Of Literaturementioning

confidence: 99%

“…To investigate how banks have adapted to the problem of climate change, researchers have examined the actions and strategies of banks in response to environmental issues (Bihma & Nhamo, 2013; Bowman, 2010; CERES, 2008; Furrer, Hamprecht, & Hoffman, 2012; Jeucken & Bouma, 1999). Research on banking and climate change has been limited, as prior research conducted on climate change has primarily focused on manufacturing-related industries (Balon, Sharma, & Barua, 2016; Kolk & Pinkse, 2005; Lee, 2012; Sprengel & Busch, 2010; Weinhofer & Hoffman, 2010).…”

Section: Introductionmentioning

confidence: 99%

Climate Change Strategic Actions in the International Banking Industry

Buranatrakul

Swierczek

2017

Global Business Review

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This article investigates the actions of international banks related to climate change adaptation. A theoretical framework was developed to assess bank climate change strategic actions based on five categories: management commitment, emissions reduction, product development, organizational involvement and external relationship development. A sample of international banks from 15 countries in four regions was analysed. Significant differences were found in the level of climate change strategic actions by banks across regions. North American banks had the highest scores on management commitment and product development. Australian banks were the top performers in external relationship development. European banks were ranked first in emissions reduction. Asian banks received the lowest score in all the categories of climate change strategic actions. The research is a unique comparative exploratory study of the strategic actions taken to address climate change in the international banking industry. The theoretical contribution of this article is its link between the theory of organizational adaptation and the climate change actions that banks practice. The research is beneficial for bank executives to develop effective environmental actions that will increase climate change mitigation and adaptation globally but particularly in Asia, which is the critical region for climate change actions.

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“…Banks are lenders, investors, advisers and shareholders that work with large corporate clients in an increasingly carbon-constrained world (Bowman, 2010). Their role in mitigating climate change through financing decisions is recognised in a suite of recent international soft law codes: the Equator Principles (2003) on project finance; the Carbon Principles (2008) on advising and lending to power companies in the USA; and the Climate Principles (2008) regarding myriad financial services offered by banks.…”

Section: The Banking Industry Incentives and Effective Climate Policymentioning

confidence: 99%

“…Although these codes do not prohibit financial support for high GHG-polluting projects or corporations, they do provide carbon-oriented due diligence and decision-making frameworks for banks. Moreover, banks play an active role as brokers and 'middlemen' in global carbon markets and renewable/clean tech investment (Bowman, 2010;Newell and Paterson, 2010). Many large, multi-jurisdictional banks are well-established in these spaces and responsible for much of the traded volume of carbon within the EU ETS (Carbon Disclosure Project, 2009).…”

Section: The Banking Industry Incentives and Effective Climate Policymentioning

confidence: 99%

Nudging effective climate policy design

Bowman¹

2011

IJGEI

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This paper applies insights from behavioural economics literature to design options in climate policy in order to make suggestions on how to create and pass effective climate regulation. It posits that policymakers can have a more comprehensive toolkit for tackling climate change by utilising knowledge of flawed human behaviour. It makes three main suggestions. First, when pricing carbon, the use of policy bundling helps to counter cognitive biases such as 'loss aversion'. Second, financial incentives are required for clean tech and renewable energy sectors to become competitive with traditional energy markets. Third, climate policy needs to target the finance sector, particularly the banking industry, to encourage capital flow to these alternative energy markets. In this way, effective climate policy may have a nudging effect on a spectrum of decision-makers, with the net benefit of facilitating climate change mitigation and timely transition to a low-carbon global economy.

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The Banking Industry's Role in Climate Change Mitigation and the Transition to a Low-Carbon Global Economy

Cited by 9 publications

References 0 publications

The Journey of Pakistan’s Banking Industry Towards Green Banking Adoption

The Journey of Pakistan’s Banking Industry Towards Green Banking Adoption

Climate Change Strategic Actions in the International Banking Industry

Nudging effective climate policy design

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