Catalysing bank climate action: Lessons from the inside

Insights from the inaugural Climate Safe Lending Fellowship

 
 

In 2021 alone, the world’s largest 60 banks provided more finance to fossil fuels than in 2016 - the year the Paris Climate Agreement was signed.

Yet there are passionate and committed individuals working inside banks who envision a banking sector that finances a just and regenerative economy – one that addresses the intersecting ecological and social breakdowns interconnected with the climate crisis. These banking professionals recognise that their institutions and sector require transformation to realise this vision and are working tirelessly to enable this from the inside out. We call them ‘climate intrapreneurs’.

Catalysing bank climate action: Lessons from the inside is the first time the unique perspectives and insights of these climate intrapreneurs have been published. They are drawn from the first ever cohort of the truly pioneering Climate Safe Lending Fellowship which saw 23 Fellows from 20 banks based across North America, Europe, Africa, Asia and the Middle East develop the capability to lead change from within their institutions. Holding roles from Vice President to Executive Officer, Fellows also uncovered new insights on what enables banks to transition more rapidly toward financing a just and regenerative future.


 
 
 

What kind of a banking system is fit for a just and regenerative economy?

Our banking system, like much of Western society, has become disconnected from human communities and the planet upon which we depend for our survival. Total systems transformation is required for banks to be fit for purpose in a just and sustainable world. This involves reorienting banking to go beyond net-zero and holistically address intersecting social and environmental issues.

What do we mean by…?

Explore our glossary to the key terms used throughout Catalysing bank climate action: Lessons from the inside.

 

  • A banking professional seeking to embed climate action within the core strategy, operations and culture of their institution

  • Where a bank’s entire lending and investment activities are aligned to financing a just and regenerative economy (see below) and keeping global temperature increase to less than 1.5°C.

    This involves a set of integrated strategies that recognise the interconnectedness of carbon emissions with broader ecological breakdown and social inequalities. A climate safe bank defunds misaligned economic activities (including extraction of fossil fuels and deforestation), finances the alternatives and supports clients and stakeholders to transition their own activities.

  • The purpose of a just and regenerative economy is ecological restoration, community resilience and social equity. A just and regenerative economy democratically shifts economic control to communities, advances ecological restoration, drives racial justice and social equity and retains and restores cultures and traditions.

    This is in contrast to the current dominant economic model, which is an ‘extractive economy’ driven by the accumulation, concentration and enclosure of wealth and power. (Adapted from Movement Generation)1

  • The process of reforming or transforming the structures, relationships, policies, power dynamics, narratives and norms in a given system in order to create positive social or environmental results. A system is a group of interacting or interdependent elements forming a unified whole.

    (Adapted from David Ehrlichman)2

  • Catalysing bank climate action avoids using the term ‘net-zero’ to describe the ultimate goal of climate intrapreneurs. A significant theme emerging from the Fellowship is that banks need to go beyond a focus on net-zero carbon emissions to addressing the range of issues interconnected with the changing climate they cause – namely broader ecological breakdown and social inequalities.

    To this extent, we use the term ‘climate safe banking’ (‘climate’ for short) to describe the goal of transforming banks so they finance a just and regenerative economy which enables human thriving on a flourishing planet. Achieving net-zero will be an important means to these ends, but is not the ultimate goal in itself.

What’s the role of bank employees in helping their banks transition more rapidly?

Climate intrapreneurs are the internal flagbearers for the kind of change needed within their institutions. The report shares three key areas of focus which are giving Climate Safe Lending Fellows the traction to drive greater climate action within their banks.

 Take action today

Inspired by the insights shared by our Climate Safe Lending Fellows? Take action here:

Insights for climate campaigners

Bank outsiders – campaigners in particular – play an important role in influencing the scale and pace of change on climate, and in holding banks accountable to it. Climate intrapreneurs and campaigners have a unique opportunity to work together to create change.

Case studies

Climate Safe Lending Fellows have been successfully employing the techniques and strategies gained on the programme inside their institutions. Explore their (anonymised) experiences, and insights from other contributors, in more detail here.

Want to do more as a climate intrapreneur?

Applications are closed for the 2023 Climate Safe Lending Fellowship - our pioneering leadership development programme for banking professionals advancing the climate agenda. Read more about the Fellowship and register your interest in the 2024 Fellowship.

 

Watch the webinar again

We officially launched our report at a special webinar attended by over 150 people from across the globe. Click the image on the left to watch it or download the presentation here.

Interested in knowing more about the Climate Safe Lending Fellowship? Found out more about the Fellowship and applications for 2024.