GENEVA (ILO News) - Private sector banks and insurers have a major enabling role to play in promoting and supporting a just climate transition, according to a new report published by the ILO and United Nations Environment Programme Finance Initiative (UNEP FI).
The report, Just Transition Finance - Pathways for banking and insurance, aims to promote broad-based sectoral support for ambitious climate action and serve as a guide for banks and insurance companies. It highlights practical strategies, emerging practices and examples of banking and underwriting activities that promote a just transition.
It also looks at the important enabling role these financial institutions can play in financing sustainable development, including through eradicating poverty, reducing inequality, combatting climate change and by aligning their business strategies and activities with the Sustainable Development Goals.
National and regional development banks can also do more to finance sustainable development, while inequality and gender inequalities need to be addressed at the financial policy level too, the report says.
The report is being published to mark International Day of Banks (4 December), which was created by the UN General Assembly to highlight the potential of multilateral and international development banks in financing sustainable development and improving living standards.
The report was launched on 3 December at the 2023 United Nations Climate Change Conference in Dubai, United Arab Emirates.
