The Role of Banks for the Transition to Circular Economy
The transition from a linear to a circular model of the financial system requires a number of changes in the way banks operate. The banks now need to take environmental aspects into consideration when working with circular economy. This article from Virginia Zhelyazkova suggests major transformation for the banks along with providing future development direction of individual segments within their framework.
Asian bank spells out smart city finance criteria
The United Overseas Bank (UOB) has launched a new framework which aims to make sustainable financing more accessible to companies which contribute to the creation of smart cities in Asia. The Smart City Sustainable Finance Framework (UOBSCSFF) is the first tool of its type among bank in Asia that sets out criteria that clients, including SMEs and large corporates, must meet to access sustainability-linked loans and trade finance facilities. Company must have a clear sustainability strategy, objectives, performance targets and agenda. Also, its business must be able to demonstrate how their activities promote a better quality of life for residents.
ABN AMRO, ING and Rabobank launch finance guidelines for circular economy
On behalf of the FinanCE Working Group, circular-economy guidelines were launched in July 2018 by ABN AMRO, ING and Rabobank. They are inspired by the ambition to create a common framework for financing the circular economy worldwide as the need for a common language of circular economy is rapidly increasing. The guidelines help financial community to assess whether or not initiatives are circular business along with recommending the community to communicate, monitor and use external review to ensure that the business is retain and contribute to circular economy.