It has become more and more obvious that going green in all business and social practices is a key prerequisite for obtaining and, most importantly, maintaining a sustainable environment.
As stated in the Financial Stability Review , which was published by the ECB in November 2020, there is a rapid growth by 170% in global assets of funds with Environmental, Social and Governance mandate in relation to 2015.Climate change and its associated risks for the economy have intensified the need for green financial products and services.
Indeed, banks in Eurozone have increased their own issuance of green bonds, the share of which increased from 4% of total euro area bank bond issuance in the first quarter of 2020 to 13% in the third quarter of the same year.
It is expected that as green markets develop, banks will also increase their role in green financing, thus helping the transition into a more sustainable and greener economy, which will be able to resist risks related to climate change.
Source of information: ECB