Antony Jenkins, CEO of Barclays,
introduces the BEI Forum report
Why today is the right time to
build on the BEI’s momentum
I am delighted that this year we
have held the Banking Environment
Initiative’s Forum in Hong Kong. The
environmental agenda has huge
momentum and innovation, and fast
growing economies have the power to
make a significant contribution towards
addressing environmental, social and
resource scarcity issues.
It has been estimated that climate
change is costing the world over $1.2
trillion a year. Issues surrounding
the environment – be they lack of
resources, clean energy, clean air or
climate change – are very real and
they are reaching a tipping point. The
problems are complex, and long term
in nature, and the collaboration of
many stakeholders will be necessary to
address them. Banks have an integral
role to play in the acceleration to a
sustainable low carbon economy.
The BEI’s focus is on delivering
solutions which respond to client
and market needs, and encouraging
industry-wide collaboration. Many firms
will be undertaking individual work in
this area, but the power of the collective
can supplement, support and promote
this agenda.
The door is open for more banks to not
just join us, but to take a leading role in
driving this initiative forward. Leaders
of large organisations are familiar with
the challenge of improving efficiency
whilst delivering sustainable growth
– the question is how we do this in a
world where success is increasingly
measured in the short term.
We need to play a role in developing
new solutions and pioneering products
and services that will help our clients
respond to the environmental issues
facing their business, and that focus on
long term as well as short term goals.
This is about being leaders, committed
to protecting the strength of our
businesses and making a positive
difference to future generations
through sustainable finance. For the
first time ever, a recent report by the
Intergovernmental Panel for Climate
Change (IPCC) contained a chapter
dedicated entirely to investment and
finance.
The emerging Green Bonds market
is an example of the growing
interest in sustainable finance, and
of the environmental innovation
that is happening now across our
industry. Renewable energy and
clean technology financing are other
areas where the financial services
industry can make a big contribution
to help encourage sustainable
development. We need to support and
intensify investment in new, emerging
technologies, to create opportunities
for new markets and drive sustainable
growth for generations to come.
The BEI has developed a track record
of driving real evolution of banking
products and services, for example with
the ‘Sustainable Shipment’ Letter of
Credit. This work is gaining momentum
and has been welcomed by the White
House, the World Economic Forum and
the United Nations, among others.
This is testament to the efforts of
this group, but also to our customers
and clients’ increasing interest in
sustainability. Without this engagement,
we will not achieve progress. This is
the underlying tenet of the Banking
Environment Initiative. We have to work
collaboratively on this agenda, be it with
corporates, government organisations,
or NGOs. Engaging with stakeholders
and forging new partnerships will
be critical to delivering innovative
outcomes. Communities around the
world are already suffering as a result
of climate change, resource scarcity,
and deforestation. We all have an
important role to play in coming up with
solutions. Access to sustainable finance
is a crucial element, and Barclays is
committed to playing a leading role.
There is now real momentum that
we need to build on. The Banking
Environment Initiative has the
governance, the structure and the
participation to move the dial and make
a lasting impact. Now we need the
commitment from members to really
take this forward.
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