Moreover, in emerging markets such as India, financing projects that focus on clean production, good corporate governance and sustainable energy are being increasingly identified as potential business opportunities for financial institutions. Furthermore, many financial institutions are also actively publicising their philanthropic activities under the corporate social responsibility banner.
All these initiatives point to the sector’s move toward financial institutions banking on their brand and reputation, to make a difference in the community in which they operate as well as, in their new risk management strategies that reflect the socio-environmental aspects of their investments. 17. There are many reasons for this change in mindset. Foremost is the increasing globalization of business.