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. However, as many of the world's largest banks meet at Money2020 in Europe this week, it is questionable whether banks are responding at the same necessary pace. Considering 30-50% of corporate profits are at risk of external factors (such as carbon pricing)* it is vital that banks respond with greater urgency. 

Emma Kisby, CEO at green fintech, Cogo, comments: “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.”

There is a clear appetite from customers for banks to help tackle the climate crisis. 70% of customers want to see their bank take action to reduce their own environmental impact and 75% 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. 

When banks do introduce climate related initiatives it has the potential to be commercially rewarding. Cogo has seen a 14+ 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% 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.”

Having launched its first banking partnership with NatWest in 2021, Cogo now works with 20 banks globally.