For banks operating in different regions across the globe, numerous geographical nuances need to be considered to ensure a climate transition that is just and equitable. It can be challenging for financial institutions to engage effectively with communities (e.g., indigenous populations, informal labor, etc.) that are most affected by the transition to a low-carbon economy, especially on an international scale. A lack of engagement while formulating a strategy and developing metrics can lead to ineffective solutions or to a lack of understanding of potential risks for clients’ transition strategies. The challenges faced by workers and communities in North America transitioning into a clean energy future and away from fossil fuels are very different from those faced in the Middle East or Asia. Thus, it is crucial for banks to understand how workers and communities in different locations may face distinct disadvantages during the transition as they adjust their portfolios to low-carbon options.
During COP28, BCG, Ceres, and Barclays brought together banks, investors, and civil society organizations for this workshop and networking event followed by a networking reception.