Liontrust 20 Years of Sustainable Investing 03.2021 - Flipbook - Page 15
on climate change
mitigation, adaptation, and finance
signed with the goal to keep
the increase in global average
temperature to well below 2°C.
Banks – Stuart Steven
• We expect banks will be a key facilitator in the shift to a lowercarbon economy, as they move to a science-based approach
aimed at aligning their loan book with the Paris Agreement.
• Many will continue to significantly increase their corporate
lending to green infrastructure projects, such as wind and solar
farms, while pulling back from lending to carbon-intensive
companies/sectors and working with corporate clients to identify
ways to reduce carbon within their operations.
• Banks will also continue reviewing the energy efficiency of
their mortgage portfolios, targeting new lending to more
energy-efficient homes as well as working with existing
homeowners to improve the efficiency of properties.
• Central banks will also continue to push in this
direction and this will broaden and accelerate
participation: the European Central Bank
has already introduced climate-related
stress tests into its assessment of banks,
for example, and this will become
Liontrust: 20 Years of Sustainable Investing - 15