‘Green Finance’ & ‘Clean Growth’ are phrases all modern companies should be au-fait with.

Since it’s inception, the UK Government’s Clean Growth Strategy has been actively supporting a low carbon economy. Businesses not only have to prove that they are adhering to a code of ethics, they also have to be continually considering their carbon imprints & how they can aid & add to our low carbon economy & workforce.

Ensuring that a business is acting in the best interests of the environment, has become a necessity.

Corporate Plc’s, Blue Chip investments & innovators identified by the Business, Industry & Industrial Strategy (BEIS) all have the capacity to generate vast incomes for the Clean Growth strategy the UK has spearheaded.

“The ‘Clean Growth Strategy’ announced the government’s ambition to provide up to £20 million to support a new clean technology early stage investment fund. In partnership with the private sector, the Clean Growth Fund aimed to speed up the deployment of innovative clean technologies that reduce greenhouse gas emissions, by making direct investments in companies seeking to commercialise promising technologies.” (1)

Since the IPCC report & the original Clean Growth Strategy were launched, we have now seen a great diversity of changing needs in business in relation to their economic growth adhering to green finance & clean growth strategies.

“Government is working with the British Standards Institute to develop a set of green standards to provide clarity to financial institutions over the credentials of green financial products.” (2)

Last week’s third Green Finance Summit held at The London Guildhall, saw the launch of the Green Finance Institute, which coincided with the Governments new Green finance Strategy.

The Green Finance Institute Launched by Dr. Rhian-Mari Thomas, CEO of the Green Finance Institute, one main workstreams will be tackling will be working side by side with central banks and supervisors. A new era for green finance by the UK for the World. (3) The Lord Mayor of London also made the bold statement “It is now time for green finance to go mainstream.”

As part of the launch, ‘Chartered Banker Institute’ launched the ‘Green Finance Certificate’ Here is what they have to say about the need for the relevant green finance & clean growth certification in the face of advancing climate change:

‘Managing climate-related risks and supporting the transition to a low-carbon world are our most significant global challenges. Achieving these requires the combined efforts of global bodies, national governments and the financial services sector, putting sustainability and stewardship at the heart of finance. To support the sector’s continued growth, finance professionals need to develop and demonstrate the knowledge and expertise of green finance principles and practice to help direct investments to support the transition to a low carbon world, address climate related risk, and explore green finance opportunities. The Green Finance Certificate™ was launched by the Chartered Banker Institute in 2018 as the first global, benchmark qualification for the growing Green Finance sector. The Certificate provides learners with a comprehensive overview and understanding of the evolving Green Finance sector, covering:

Scientific background to Green Finance – climate science and the transition to a low carbon world
Global, international and national responses to climate change
Climate-related financial risks, stranded assets and other environmental risks
Key Green Finance principles, including the UN Sustainable Development Goals, TCFD, Green Bond Principles and Green Loan Principles
Importance of monitoring and verification
Green Finance products and services (banking, insurance and investment)
Green FinTech
Ethical dimensions of Green Finance and the Role of the Green Finance Professional (4)

The very fact that this certification has now been made readily available & is being actively promoted throughout the finance sector; goes to show how the shift to ethical & green finance is becoming an accepted expectation throughout the finance sector.

Written by Katy Jane on behalf of Virtually Smart Ltd