Client Engagement: Reshaping the bank-client relationship to accelerate the transition to a net zero economy

Banks have a vital role to play in accelerating the transition to a net zero carbon economy. Bank 2030: Accelerating the transition to a low carbon economy (CISL, 2020) demonstrated that banking models and mindsets need to innovate in order to provide value and support to clients as they pursue climate objectives.

Today, banks sit in a unique position between the capital and the real economy. Their financing activities and connection into the real economy are an important lever for engagement for change. On the one hand sustainability and sustainable finance experts in the banks remain limited in number, restricting the ability to scale knowledge across relationship managers who interact with clients on a regular basis.

The Banking Environment Initiative’s project “Client Engagement” will enable banks’ relationship managers and product specialists to engage with their clients for change in the real economy and accelerate net zero carbon transition. We have developed a guide, which aims to empower immediate action, long-term partnerships and resilience for future environmental, social and economic dimensions.

The current bank-client relationship model is not fit to engage with the client on transition plans as knowledge, time and standardised questions and topics to ask are not clear. Currently, both finance and the real economy lack robust climate-related approaches with which to design and execute transition plans, assess decisions and monitor progress.

Let’s discuss Climate: The essential guide to bank-client engagement was published in May 2021 builds on Bank 2030: Accelerating the transition to a low carbon economy.

Read the guide

Acknowledgements

CISL would like to thank members of the Banking Environment Initiative for their support of this research into client engagement for the net zero carbon economy.