„go green‟ mantra permeating all
spheres of life, the banking sector too hasadopted sustainable practices to reduce itscarbon footprint. Collectively termed
“greenbanking,” these initiatives range from day
-to-day banking operations to investments in
Paperless statements, bills and annual reports.
Donations to conservation charities as anincentive for choosing green products.
Special line of credit to homeowners for investment in energy-efficient upgrades.Listed below are some proactive initiatives of banks globally.
Canadian banks have adopted the Equator Principles, a set of globally recognized,voluntary guidelines established to assessand manage social and environmental risk inproject financing.
At the end of 2010, green credit issued by Bankof China exceeded RMB 190 billion with newissuances up by more than 40 billion.
Where is the money going? As per the Bloomberg New Energy Financepresentations, global investments in cleantechnology have increased from USD 54 billionin 2004 to USD 260 billion in 2011, withregion-wise investments in 2011 as follows.
companies involved in renewable and cleanenergy technologies. In a bid to discharge socialresponsibility while retaining profitability, banksare adopting green banking worldwide, withthose from the Asia-Oceanic countries leading
At the end of 2011, China Development Bankhad lent 658 billion Yuan to energy-saving,emission-reducing projects, accounting for
12.7% of the bank‟s total outstanding loans.
China Development Bank Corp, which financesover 50% of overseas projects of Chineseenterprises, has financed a Chinese companythat operates an iron ore mine in Africa. Thesefunds are apparently utilized to move surfacesoil to a place of safety to protect local flora.
The State Bank of India has introduced
“green channel counters” and “no queuebanking” in over 5,000 branches across India,
doing away with deposit slips.North America and Caribbean - 30%
Europe - 24%
Asia & Oceanic - 39%
Central & South America - 6%Middle East & Africa - 1%