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From green banking to green rating

You feel like talking about green economy then if no one gives you the money for investments, or whoever has the money keeps it tight because they don't trust much. In green economy, let's face it, the banking system has a lot to do with it and the green banking (understood as the sensitivity of the banking system to the economy that makes environmental sustainability a key to development) plays a fundamental role.

It is therefore necessary for banks and companies to look each other in the eye, and then decide to trust each other without risking their necks. Maybe a company does not have a large turnover or great liquidity (if it did, it would not ask for a loan), but it has valid projects in the drawer and green processes. We then need a green rating, inside the green banking, and you need skills and technicality (on the part of the banks) able to use them.

A good moment was for example the Green Globe Banking Conference of Milan, where operators of the banking system and companies discussed the issue of access to credit, that is, the burning news. What emerged from the debate? First of all, there are 4 sectors of the green economy with the potential to trigger economic development: energy and energy efficiency, tourism, agri-food and real estate.

A crucial aspect is that of the aforementioned systems of rating adopted by banks: the vote that is attributed to a company and which represents the fundamental step to access credit. The banks present at the Green Globe Banking Conference have highlighted that the rating it is evolving with a view to including increasingly qualitative parameters from a perspective green.

We therefore pass, or have already passed, from a purely quantitative approach, based on company turnover and the state of financial statements, to a more complex vision that also takes into consideration other aspects: from the projects implemented to the choice of investing in products is green processes. In short, the green rating.

There challenge then it is twofold. First of all, banks need to be able to evolve to understand and exploit the potential of a sector, that one green, highly innovative. Knowing the technical specificities and repercussions of investments in areas such as building renovation and renewable energy is the first step to facilitate access to credit for companies with vision and perspective.

Secondly, banks must be able not only to evaluate companies from an economic point of view, but also to provide advice and support, for example, in the elaboration of key green of the business plan. Many small and medium-sized enterprises, in fact, still struggle to produce projects and meet the requirements required by banks. We need more banks green, serves green banking.

Video: Su0026P Global Ratings Discuss DZ Banks First Green Bond (October 2020).