Banks, insurers can play major role in creating climate transition: Report says

Private sector banks and insurers have a major enabling role to play in promoting and supporting a just climate transition, according to a new report published by the ILO and United Nations Environment Programme Finance Initiative (UNEP FI) on Monday.

The report, Just Transition Finance - Pathways for banking and insurance, aims to promote broad-based sectoral support for ambitious and inclusive climate action and serve as a guide for banks and insurance companies.

It highlights practical strategies, emerging practices and examples of banking and underwriting activities that promote a just transition.

It also looks at the important enabling role these financial institutions can play in supporting a just transition, including through reducing inequality, combatting climate change and by embedding just transition objectives in their business strategies.

Still, the report highlights how banks and insurance companies can do more to finance sustainable development.

The report is being published ahead of the International Day of Banks (4 December), which was created by the UN General Assembly to highlight the potential of financial institutions in financing sustainable development and improving living standards.

The report was launched on December 3, at the 2023 United Nations Climate Change Conference in Dubai, United Arab Emirates.