Responsible Finance

A survey of retail banking customers of Islamic banks shows wide-scale enthusiasm for sustainability and a belief that Islamic finance aligns well with the SDGs. However, the challenges posed by ESG risks and concerns about greenwashing make it increasingly urgent that Islamic banks maintain customer confidence. …

The connection between funds’ names and their sustainability strategies continues to be a hot-button issue for regulators tackling greenwashing. One of the most challenging elements is that of measurement when comparing a fund’s activities with either its own strategy or a common reference point. …

Financial institutions’ credibility on Net Zero is largely outside of their direct control because of the importance of their customers’ own transition plans. …

Gaps in high-emitting and hard-to-abate companies’ transition plans make it harder for financial institutions and investors to understand how the broader value chain may be impacted by the success or failure of a few key transition plans. This risk is accentuated if there is tunnel vision focused on high-emitting sectors…

The ECB’s new sustainable finance & climate data indicators highlight some of the most pressing data quality and methodology issues in producing the information needed to guide climate change mitigation. …

There is a win–win-win potential for policies to strengthen climate mitigation efforts in emerging and developing countries. New research provides evidence that stronger climate policy can induce more financing from foreign banks seeking green investment without reducing other financing channels. …

By Sylvia Kezengwa, RFI Foundation Global Virtual Innovation Hub Coordinator FinTechs, like other financial sector institutions, have to consider and respond to environmental, social and governance issues. Although this will reduce their susceptibility to ESG-related losses, it can also provide something for FinTechs to capitalize on. …

The building blocks behind the ‘information governance’ of sustainable finance appear to be an extension of a similar process undertaken to organize financial information to support more efficient capital allocation. …

Many times I see young people using their debit cards, thinking they are making a responsible financial choice. They often have misconceptions, or lack knowledge about credit cards, and may not even know the difference between them. …