The Angolan Secretary of State for the Environment today urged the country’s financial institutions to integrate the financial risks arising from climate change into their lending models.
Yuri de Sousa Santos, who today opened the 2nd Conference on Sustainability in Banking, organised by the Angolan Banking Association (Abanc), also called for the creation of innovative financial products, such as green loans, sustainable bonds and investments in renewable energies, which encourage sustainability.
“In addition to the risks, the efforts to mitigate and adapt to climate change are a source of opportunities,” said the Angolan leader, emphasising that the adoption of low-carbon energy sources, the performance of new products and services, and access to new markets are some of the advantages that the sustainability agenda can offer.
He highlighted the crucial role of financial institutions in the transformation process, promoting education on climate risks, collaborating with organisations, sharing data and developing innovative solutions.
“I want to reiterate the importance of our collective efforts. On the one hand, the commitment of the Angolan financial system, in its responsibility to promote banking practices that bring profits and, on the other hand, that protect the environment, support the energy transition, reduce dependence on the oil sector and fundamentally benefit society,” he said.
The president of Abanc, Mário Nascimento, said that the issue of ESG (Environmental, Social and Governance) has become increasingly important in the financial sector, and that the concept represents a fundamental change in the way financial institutions operate.
According to Mário Nascimento, banking institutions have a crucial role to play in promoting sustainable practices, which includes financing and projects that promote clean energy, the conservation of natural resources and the reduction of carbon emissions, as well as the responsibility to avoid financing activities that could cause significant environmental damage.
Mário Nascimento said that Abanc had recently set up a working group with a specific focus on ESG and sustainability to implement its strategic agenda, with a view to achieving important milestones in the next two or three years.
Promoting alignment with global sustainable finance standards, fostering innovation and operational efficiency in banking practices and facilitating strategic alliances for banks and their members are Abanc’s goals for the coming years, he said.
Lusa
