Cogo urges banks to join the climate race

The rate of climate change since the mid-20th century is unprecedented, with the decade between 2011-2020 being the hottest on record. As many of the world’s largest banks meet at Money2020 in Europe this week, questions arise about whether banks are responding with the necessary urgency. Considering 30-50% of corporate profits are at risk from external factors such as carbon pricing*, it is vital that banks respond more rapidly.

Emma Kisby, CEO of green fintech company Cogo, comments: “Banks globally need to move faster to help create the systemic change required from both consumers and corporates. As central players in the economic system, banks need to align their climate strategies with the urgency of climate change.”

There is a clear appetite from customers for banks to help tackle the climate crisis. 70% of customers want their bank to take action to reduce its own environmental impact, and 75% of banking customers want to know more about the environmental impact of how they spend their money**. Corporates are also looking to their banks for climate support, with increasing ESG regulation globally.

When banks introduce climate-related initiatives, it can be commercially rewarding. Cogo has seen a 14+ NPS*** uplift for customers using its carbon footprint technology, which allows banking customers to measure, understand, and reduce their carbon footprint. It is forecasted that this increase in NPS has a potential 2% increase in revenue for banks.

Kisby adds: “Through the integration of our innovative carbon management technology into the banking experience, we’ve seen that banks have the ability to align purpose with profit. This is a win-win for people and the planet.”

Having launched its first banking partnership with NatWest in 2021, Cogo now works with 20 banks globally.