“To achieve our climate goals, every company, every financial firm, every bank, insurer and investor will need to change”. This statement from the COP26 website in relation to the third goal ‘Mobilise finance’ goes to demonstrate how intrinsic finance is to the climate.
Financial support will be vital for businesses in their transition to Net Zero
As discussed in our first article in this COP 26 series businesses cannot manage what they cannot measure, so scientific and fiscal support is going to be needed for companies to support them through developing an inventory of their direct and indirect GHG emissions. Based on the results, companies will become aware of their emission hotspots and how these may have a financial impact and/or present an opportunity for their business, and are able to set more realistic reduction targets regarding their transition to Net Zero.
More significantly though, financial support for businesses, not-for-profit organisations, governments in the developing world, and grass roots organisations, who are trying to prevent global warming going above 1.5 degrees will be vital if the aspirations of COP26 are to be met. This requires the mobilization of billions of dollars’ worth of funding, as well as the correct allocation of that funding and monitoring of its usage – something which will require governments and financial instructions globally to collaborate on.
How Control Union can help
Control Union supports its clients to ensure that funds for climate positive initiatives reach the correct places. On the ground, we have supported agricultural cooperatives in developing countries who were seeking to expand their operations, by connecting them with financial institutions in the Western European market for sustainability linked loans. We have been able to do this by identifying farming practices which could be made more sustainable, proposed actions for continuous improvement and ultimately translating these into fundable propositions. At the other end of the scale, we have provided due diligence services to financial institutions such as banks and private equity firms, into the ESG risks of companies they are looking to finance and invest in respectively.
“Sustainability should already be high on the agenda for every company. We are proud to work with our clients to help to fund our collective progress towards a Net Zero Future.” – Mr. Prakhar Goel, Manager Peterson Control Union Group
For more information on how we can support your company in transitioning towards Low Carbon and ultimately Net Zero please contact us at on [email protected]
