Financial institutions, especially banks, have traditionally done a lot for economic development and better life conditions. Value creation, wealth generation, entrepreneurship promotion, reduction of transaction costs, and ultimately welfare and prosperity are among their main business focus. Yet, another facet to this issue has recently come to the fore. Financial institutions, taking on social commitments, are now acting as an important outpost for environmental protection.
Banks, especially those geared to development, display more inclination for raising funds to address environmental issues, thanks to their typically widespread outreach. Financing planet health projects including, but not limited to, environment protection and fighting deforestation is a common practice; but, launching research campaign and promoting such virtual banking as it may serve a green purpose are what can make a difference.
Technology boom and public interest in electronic applications contribute a good deal to this matter. ATM deployment, electronic banking, mobile banking windows, SMS alerts, e-transfers, e-statement, credit/debit cards, etc have paved the way for less air pollution and lesser need to move around to get things done.
Banks - perhaps unlike other bureaucratic institutions in times of resource scarcity- are more inclined to reducing paperwork in their inter-department communications. They tend to avoid paper-based task circulation, and this helps ensure that, above all, energy saving initiatives, air pollution reduction and green space safety measures are in place.
In so doing, banks operate in line with their supervisory guidelines, while they also play an important part to help reduce, to the extent possible, harm to the ecology and natural resources and attract social acclaim. Financial institutions have learned a lesson: They can grow stronger as they go green.
