Insight: How can climate campaigners & climate intrapreneurs rally for a common goal?
As part of the publication of the brand new Catalysing Bank Climate Action: Lessons from the Inside report, we share key insights, lessons and anonymised case studies in this blog series.
This excerpt from the report explains how the banking system is much larger than the banking sector alone, and suggests how bank outsiders – campaigners in particular – can play an important role in influencing the scale and pace of change on climate, and in holding banks accountable to it.
To read this insight in full, download the report using the button at the bottom of the page.
A complex web of individuals
We are all part of the banking system – the way it operates affects us all – though our roles are different and the amount of power we have to influence it is not evenly distributed. When the key actors and forces (see image below) work together, we can create the conditions for banks to rapidly transition to meet climate goals.
No single actor can transform banks on their own. But with collective action we can reach a tipping point for change.
Banking system map - Finance Innovation Lab, 2022.
Taking joint action
A large number of NGOs and campaigning groups are focused on influencing banks through one or more of these external levers. This work is vitally important because there are some changes that are very difficult for climate intrapreneurs to make on the inside, without something shifting in their external environment first.
For example, banks have been hesitant to be a first mover on climate in case it makes them less competitive. However, if well-crafted regulation were to require every bank to take action, then sector-wide change could happen very quickly. Until then, we are reliant on voluntary leadership from the institutions that dare to move first, or joint action through industry alliances in a sector with low trust and high competitiveness between banks, plus a strong fear of regulatory repercussions for breaches of competition law.
Campaigners, including individuals and civil society organisations, are demanding banks take science-aligned climate action at sufficient levels of ambition. These campaigners play an important role in building the power of excluded voices in banking, raising reputational risk for banks and motivating various stakeholders to hold banks accountable on their climate progress.
Committed climate activists exist within banks
Because most banks are still moving too slowly on climate, it can appear that those on the inside simply don’t care. What climate intrapreneurs want campaigners to know is that committed climate activists like them exist within banks, and they are working tirelessly to increase the pace and scale of change.
What climate intrapreneurs want from campaigners:
Influence more rigorous regulation.
Target bank decision-makers, in particular boards.
Hold banks accountable to their commitments.
Share expertise to build capacity within banks.
Climate intrapreneurs and campaigners are allies, working for the same goal but playing different roles. If campaigners and intrapreneurs can build relationships of mutual respect, intrapreneurs can help activists gain a more nuanced understanding of banks and what kind of external pressure will be most beneficial in enabling change. In return, campaigners can help intrapreneurs understand where their bank is falling short, and to access the expertise they need to rapidly develop just and regenerative solutions.
For deeper insight and examples of how intrapreneurs can work with external stakeholders to accelerate the climate transition, download the report using the button below.