By Jon Sohn
WRI worked recently with Wachovia Bank to develop a number of new environmental commitments, and recognizes them as solid progress towards full accounting of environmental considerations. WRI believes that financial institutions working to quantify the financial costs of GHG emissions who also proactively engage clients on climate change will be better positioned in a carbon constrained economy. At the same time, WRI is engaging financial institutions to develop carbon mitigation strategies in their lending and investment portfolios with a view to reducing global greenhouse gas emissions and shifting investment towards clean energy. There is still much work to do with financial institutions to achieve these goals.
Notably, Wachovia also becomes the latest signatory to the Equator Principles
, a benchmark for the financial industry to manage social and environmental issues in project financing that at its core adopts the environmental and social standards of the World Bank Group’s International Finance Corporation (IFC).Wachovia’s announcements, described below, represent a trend among private sector financial institutions to mainstream environmental and social considerations into their business practices. Banks are recognizing the significant opportunities and risks of environmental concerns in their operations. Wachovia joins Goldman Sachs
and JP Morgan among US financial institutions recognizing the need for federal regulation on climate change.The Details
Wachovia’s new Environmental Principles and Commitments
- Global and Local Ecosystem Protection
- Sustained Use of Natural Resources
- Waste Reduction & Disposal
- Energy Conservation
Wachovia
Jon Sohn, Senior Associate IIIJon Sohn is Senior Associate on the International Financial Flows and the Environment Project, and leads WRI’s Financial Flows Objective. He works with commercial banks and public financial institutions on environmental and social risks and opportunities
