Fintech
Cogo calls on banks to act against climate change
How many of the world’s largest banks meet Money2020 in Europe this week, green fintech Cogo asks whether they are responding to climate change at the pace needed.
There is a clear desire from customers for banks to help them address the problem climate crisis. 70% of customers want their bank to take action to reduce their environmental impact and 75% of banking customers want to know more about the environmental impact of how they spend their money. Companies are also turning to their bank for climate support, as ESG regulation increases globally.
Emma Kisby, The CEO of Cogo, said: “Banks globally must move faster to help create the systemic change required by both consumers and businesses. As central players in the economic system, banks must align their climate strategies with the urgency of climate change.”
The rate of climate change since the mid-20th century is unprecedented. This rate of change is even more rapid recently, in the decade 2011-2020 the hottest on record. Considering that 30-50% of corporate profits are at risk due to external factors (e.g. carbon pricing), it is vital that banks respond to this crisis with greater urgency.
But what do the banks gain from it? Well, when they introduce climate-related initiatives, they can be commercially rewarding. After launching its first banking partnership with NatWest in 2021, Cogo now partners with 20 banks worldwide and has seen a 14+ increase in Net Promoter Score (NPS) for customers using its carbon footprint technology, which allows banking customers to measure, understand and, in turn, reduce your carbon footprint. This increase in NPS is expected to result in a potential 2% increase in revenue for banks.
Kisby adds; “By integrating our innovative carbon management technology into the banking experience, we have found that banks have the ability to align purpose with profit. This is a win-win for people and the planet.”
