As many of the world’s largest banks meet at Money2020 in Europe this week, green fintech Cogo asks whether they are responding to climate change at the necessary pace.
There is a clear appetite from customers for banks to help tackle the climate crisis. 70 per cent of customers want to see their bank take action to reduce their own environmental impact and 75 per cent of banking customers want to know more about the environmental impact of how they spend their money. Corporates are looking to their bank for climate support too, with increasing ESG regulation globally.
Emma Kisby, CEO at Cogo, said: “Banks globally need to move faster to help create the systemic change that is required from both consumers and corporates. As central players in the economic system banks need to align their climate strategies with the urgency of climate change.”
The rate of climate change since the mid-20th century is unprecedented. This rate of change is even more rapid recently, with the decade between 2011-2020 being the hottest on record. Considering 30-50 per cent of corporate profits are at risk of external factors (i.e. carbon pricing) it is vital that banks respond to this crisis with greater urgency.
But what’s in it for banks? Well, when they do introduce climate-related initiatives it can be commercially rewarding. Having launched its first banking partnership with NatWest in 2021, Cogo now works with 20 banks globally and has seen a 14+ Net Promoter Score (NPS) uplift for customers using its carbon footprint technology, which allows banking customers to measure, understand and in turn, reduce their carbon footprint. It is forecasted that this increase in NPS has a potential 2 per cent increase in revenue for banks.
Kisby adds; “We’ve seen through the integration of our innovative carbon management technology into the banking experience, that banks have the ability to align purpose with profit. This is a win-win for people and the planet.”
Polly Jean Harrison
