A credible bank climate transition: more than changing the lightbulbs
How might bank leaders develop the necessary mindsets and skills to navigate the complex organisational challenges to ensure banks are on track to meet their climate targets?
By James Vaccaro, Executive Director of the Climate Safe Lending Network
Where 2021 was the year for banks setting climate targets, 2022 is the year for formulating transition plans.
But what do we really think of when we say ‘transition’? And what makes a bank’s transition plan and progress against it credible in the eyes of climate science? At one level, we know it means that GHG emissions must reduce to zero. But our understanding of what is entailed to get there is inevitably entangled with our previous experiences, beliefs and assumptions.
For some, the transition might look like a series of win-wins that lead to green growth, whereas to others it brings up more challenging dilemmas that need to be resolved. For some, it might seem like switching out one input for another (like changing a lightbulb or a fuel source) whereas for others it brings up more systemic change and the need for fundamental business model redesign (like the circular economy or regenerative agriculture).
It’s likely that the easy changes will be achieved first, and that while important and necessary, they will collectively be insufficient. The deeper the change, the more that leaders need to support their organisations through transformation processes - constructively challenging core beliefs about how the world works and the organisation’s purpose, to help build an aligned culture and strategies that are fit for the future.
With more sustainability education has come more knowledge about climate change, climate-related risks and evolving disclosure frameworks for banks along with increasing inter-connection between climate and wider sustainability factors. But knowledge will not be enough on its own. There is the saying: ‘Knowledge is to know that a tomato is a fruit, whereas wisdom is to not put one in a fruit salad’. It’s all about how sustainability insights from science, market developments and societal behaviours are applied, that will really count.
Driving effective change in these more complex organisational challenges will require will, wisdom, courage and entrepreneurialism. This is the proposition for the Climate Safe Lending Fellowship.
We support leaders within banks, across a huge diversity of institutions, roles, geographies to tackle these systemic issues, support one another as peers and optimise their effectiveness in driving change - both within their organisations and across the wider financial sector. At a time where much of the focus in sustainable finance is on structural tools like disclosure and regulation, our Fellowship anchors its exploration upon the deeper leverage points of intent and purpose (Meadows, 1999). By attaching the curriculum to real-life issues that Fellows are trying to address in their organisations, the Fellowship outcomes are tangible and practical.
We see many more leaders within the financial sector who recognise the magnitude and complexity of the challenge ahead. They recognise there is far more to be done after the lightbulbs have been changed. We look forward to seeing many more of them join our next cohort starting in January 2023.
There is much to do in changing finance and given how quickly the clock on climate change is running down, we don’t have long.
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About the Fellowship
Beginning in January, the 2023 Fellowship cohort will focus on the theme of ‘Credibility in the climate transition’. Together we will explore how bank climate champions can enable their institutions to credibly demonstrate climate leadership through progressing on a trajectory that will achieve Paris-aligned climate goals. Fellows will be supported to unlock progress within their banks to align strong climate ambition with rigorous climate action.
Who is it for?
We will appoint a cohort of ambitious banking professionals who are working to catalyse a credible climate transition within private sector, commercial banks with large climate impacts.
To be eligible for the Fellowship applicants must:
Currently work for a private sector commercial bank
Be actively working to catalyse the climate transition within their institution - whether as part of their day job, or side-of-desk
Have a minimum of three years experience in banking and the potential to influence key internal stakeholders
We encourage organisations to nominate and support up to three employees from across the organisation to join our cohort. Group discounts are available.
Apply for the Fellowship
Applications to join the Fellowship close on 13 November 2022. Find out more about the Fellowship here or get in touch with Ally Spencer from the Fellowship team.