PLANET
The climate breakdown and biodiversity loss — these challenges directly impact food security, economies and livelihoods. In the aftermath of our event's Planet track, we're sharing some key insights from the sessions that emphasize the critical role finance plays in ensuring our planet's sustainability.
Managing ESG risks just got easier
Our ESG+ department together with Steward Redqueen launched our brand-new FI ESG Tool aimed at financial institutions and MSME banks. Through 3 modules, our ready-to-use tool empowers FIs with the support, guidance, and advice needed to manage ESG risks related to their business activities: from conducting instant ESG risk assessments to receiving support on establishing external grievance mechanisms, to getting guidance on becoming a signatory of UN Principles for Responsible Banking.
Shared insight
Tanvir Hasan, Environmental & Social Risk Specialist at Eastern Bank PLC in Bangladesh, emphasized the importance of Development Finance Institutions (DFIs) in promoting a just climate transition for countries like Bangladesh, which are highly vulnerable to climate risks, despite their relatively low per capita emissions. The emphasis was also on the need for significant strides in climate adaptation.
Climate risk in the boardroom
The panelists agreed that climate risk has a ripple effect on many key aspects of finance and that it should be made into a distinct agenda point in the boardroom. “We talk a lot about the E and S of ESG, but how can we make it a driver of change? How do we avoid climate becoming a box-ticking exercise? Integrating the two topics is key to solving this problem, with the G becoming the glue across all pillars."
For more insights, read the interview with Zipporah Gitau in our previous edition of Future-minded Reversing the ripple effect - Waves of Change.
Shared insight
We find ourselves pushing the limits of our planet, transgressing its boundaries. Our heavy reliance on a monocrop-based system, primarily centered around staples like rice and maize, comes at a cost. In short, the hidden expenses of our food system are staggering. These challenges not only strain our planet but also lead to declining productivity and escalating prices. So what's next from here?
The way forward requires a food systems approach based on nature positive production, tackling food loss and waste, and adopting sustainable consumption practices. Only through these transformative steps can we hope to chart a path toward a more sustainable and resilient future.
Learn more about the approach of the Dutch Fund for Climate and Development
What's being said
Michael Schlein, CEO of Accion attended the session on FMO’s new ESG tool, and shared what he thought about this new tool.
Catalyzing climate finance via data-driven tools
If you don’t have the data, it is very difficult to know how well or poorly you are doing. Enter the Joint Impact Model 3.0, which helps those who are willing to act on their climate footprint. Essentially, the tool benefits them in the short term by facilitating their positioning on the green market. With the JIM, you can pinpoint which sectors are emitting high amounts of carbon and hone in on them. The JIM was noted as potentially playing a significant role in enabling a just climate transition for the most vulnerable.
Successful sustainability strategies
In an animated discussion, it was concluded that there are no blueprints for successful sustainability strategies. Instead, they have emerged from isolated initiatives, credit lines, and a desire for responsible banking, or CSR. In the case of Grupo Promerica, they began early by offering green loans in 2009. Throughout their journey, they have encountered numerous challenges. Their strategy is rooted in sustainable business practices, impact measurement, social investment, and setting a leading example.
Shared insight
