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How financial enterprises can drive green innovation

3 MINS READ

Highlights

  • Sustainable innovation in financial institutions needs capital. At the COP26 climate summit, a global coalition of over 450 financial institutions controlling over $130 trillion of assets pledged to align their investments with net zero emissions by 2050.
  • Assessing risk is an area where innovation is urgently needed. TCS’ research has found that about 20-30% of the additional data financial institutions require to assess climate risk is currently unavailable. 
  • AI and ML enable investors to look at alpha—returns on investments above a benchmark—in broader terms than traditional risk and performance metrics.
  • Banks can’t tackle their emissions in isolation. Financial institutions will draw strength from ecosystems.