Green financing: why companies need to consider it

As policymakers are strengthening the regulatory framework to foster sustainable transition, banks and financial institutions are also called upon to play their part in choosing to invest in sustainable businesses. This scenario has led to the rise of green finance.

What is green finance and how can it impact your business?

The expression green finance, which is part of the broader field of sustainable finance, refers to financial instruments through which "environmentally sustainable" development, energy transition and the fight against global warming are promoted.

Climate change poses significant risks to businesses around the world: extreme climate events (such as floods, wildfires, and drought) can have a significant impact on businesses, as they can result in supply chain disruption, loss of assets, and even damage to office buildings or industrial facilities.

However, extreme climate events are not the only risks to business continuity: the supply chain interruptions that have happened in recent years have underlined the importance of having a sustainable procurement strategy.

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