Green Banking
Green Banking
Green Banking
Powerpoint Templates
Introduction Introduction
Green concept
Green concept
Climate change refers to any significant change in measures of climate.
Green the warming that can occur as Global warming isbanking & sustainabillitya result of increased emissions of greenhouse gases from human activities.
Climate change is on the agenda for governments, regulators, consumers and businesses and this is creating some major risks, but also opportunities.
Global initiatives
Around 200 financial institutions around the globe signatories to United Nations Environment Programme Finance Initiative (UNEPFI).
Conclusion
ABN Amro, Deutsche, Standard Chartered, HSBC Bank etc. look at environment issues discussed under Kyoto Protocol. BankTract a global coalition of NGOs formed a network formed in 2002 to promote sustainable finance in the commercial sector. Sustainable Banking Award initiated by IFC along with the Financial Times since 2006.
Indian scenario
No law and rule in India that can hold banks responsible for scrutinizing investment projects before financing and for the environmental damage created by its client. 9 industries, namely (a) primary metallurgical industries namely zinc, copper, steel etc. (b) paper & pulp (c) pesticides/insecticides (d) refines (e) fertilizers (f) tanneries (g) sugar (h) textiles (i) chemicals/ pharmaceuticals are the possible polluters of future.
IndusInd Bank inaugurated Mumbais first solar-powered ATM as part of its Green Office Project campaign titled Hum aur Hariyaliin 2009 and also introduced thin computing. The State Bank of India (SBI), as part of its green banking policy, plans to set up captive windmills to generate 15 Mw of power in Tamil Nadu, Maharashtra and Gujarat. ICICI Bank also initiated a programme to sensitise corporate bodies, institutions, banks and government agencies involved in project planning on issues like biodiversity, wildlife habitats and environmental laws.
IDBI Bank, for instance, has an exclusive team working on clean development mechanism (CDM) advisory services. It also implemented a refinance scheme for energy saving projects for micro, small and medium enterprises sector.
Global Initiatives
Green banking strategies involves two components: (1) managing environment risk and (2) identifying opportunities for innovative environmentally oriented financial products. i Carbon Credit Business ii. Green Financial products and Services 1. Retail banking 2. Energy-Efficient Mortgages 3. Green Credit Cards 4. Insurance 5. Project Finance 6. Asset Management 7. Corporate and Investment Banking
Indian Scenario
iii Cabon footprint reduction 1. Green Buildings 2. Paperless Banking a. Treasury departments b. Paperless Billing iii. Using mass transportation systems iv. Social responsibility services
Triodos Bank
Conclusion
It is important that Indian banks recognize their environmental and social responsibilities if they desire to enter global markets since as far as green banking is concerned, Indian banks are far behind their counterparts from developed countries. Indias growth story and commitment to cut its carbon intensity by 20-25% from 2005 levels by 2020 provides tremendous opportunities for Indian banks from funding sustainable projects to offering innovative products and services in the areas of green banking. For effective green banking, the RBI and the Indian government should pay a proactive role and formulate green policy guidelines and financial incentives.
Indian banks should adopt green banking as a business model without much further delay.