Drivers and Obstacles for “Net Zero” Banking

GDS Modellica
21/12/2022
As awareness of the importance of sustainability continues to grow, there is virtually no sector of the economy that is not looking to undertake new initiatives. This drive for sustainability is not just a response to the demands of society but also a necessary commitment to a better future. Logically, the banking sector is no exception, and here at GDS Modellica, the long-term viability of the industry is something that we are heavily involved in.  

To the average person on the street, it could seem that banking and environmental sustainability have very little to do with each other, but nothing could be further from the truth. If we just think for a moment about all the transactions that require technical and human resources to keep markets running, we can get a pretty good idea of why optimisation plays a key part in reducing the sector’s carbon footprint and protecting the planet.  

In fact, in April 2021, the Net-Zero Banking Alliance was founded, an organisation that aims to reduce the industry’s greenhouse gas emissions. Around 4 out of every 10 large firms on the planet are members of the alliance, which requires members to sign up to a Commitment Statement to join. The organisation’s presence in economic publications is growing, and it is even featured on the corporate websites of some of the most renowned firms in the sector.

  In light of a recent analysis by Accenture examining the main obstacles to banks’ net zero plans, here at GDS Modellica, we have once again produced an infographic. We hope that this document provides you with a quick overview of the drivers and issues involved in achieving this laudable objective, according to the Net-Zero Banking Alliance and the consulting firm’s own research.

With the commitments of this organisation, we hope that these obstacles can be overcome as we seek to achieve a net balance of zero emissions in the sector.
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