It offers banks the opportunity to improve their profit profiles and, at the same time, to contribute to the emissions reduction objectives. The financing of eco-sustainable projects and the issuance of green bonds, for example, can achieve an increase in earnings and, going forward, a reduction in the cost of raising funds.
Banks can also benefit from the development of consultancy services for firms that intend to raise funds for initiatives with a positive environmental impact and from the placement of asset management products geared to this segment of the market. In this case too, banks must be prepared to manage the effects of the transition on risks, in particular credit risk.