That is why banks need the cloud in the race for zero emissions
Published: April 21, 2022, 14: 03Updated: May 3, 2022, 14:58Kalliopi Chioti, Chief Environmental, Social and Governance Officer at Temenos. Banks have accelerated the introduction of cloud solutions to reduce costs and change customer experiences. – While the pandemic required proactive solutions to immediate challenges, it is now about racing towards zero emissions. Banks have realized that the cloud can be part of the solution, says Kalliopi Chioti, Chief Environmental, Social and Governance Officer at the international software company Temenos.Temenos expands its position as ESG leader in the Dow Jones Sustainability World and Europe Index – read more here. Until now, digitalisation among banks has primarily taken place because banks have been under financial pressure and want to meet customers’ demand for faster services. The cloud has made it possible to accelerate new innovative solutions, reduce costs and give the customer a better experience. But it is also a prerequisite for success in the future and achieving zero emissions. Compared to old-fashioned IT infrastructure, cloud services can offer a technology that accounts for small carbon emissions. Leading cloud service providers estimate that companies that use their services cause about 95 percent less carbon emissions. The thing is pretty clear: banks and others who have set ambitious targets for achieving zero emissions will not achieve that goal without introducing more cloud solutions.
ESG as a business concept
The company Temenos specializes in banking software and has environmental, social and corporate governance, ESG, as its business concept. With Temeno’s cloud banking platform, banks can get an overview of how they manage their emissions and guidance on how to achieve the goal of being completely emission-free. It has also chosen to collaborate with companies that make full use of renewable energy. At the same time, Temenos offers its customers access to the very latest software and the ability to accelerate digitization. This contradicts the myth that you have to do less to reduce your ecological footprint. In Temeno’s cloud service, it is possible to combine digitalisation with growth. An example is the Italian bank Flowe, a cloud-based bank built on green principles. Six months after the bank was launched in 2020, it had gained 600,000 new customers. With the help of Temenos, Flowe can grow sustainably and transfer benefits to customers for a cleaner, greener planet and a better society. Flowe is the first climate-neutral bank in Italy to be certified as a B-corp.
Environmental profile as important as financial services
How important is it then for a bank to be climate neutral? In fact, more important than you might think. Consumers are becoming increasingly aware that their choices also have a climate impact. This is especially true for young consumers. The millennial generation is waiting to inherit $ 68 trillion in less than ten years. Banks will not be able to afford to ignore their preferences. Today, a bank’s environmental profile is at least as important as the financial services it provides. Environmentally conscious customers have already pushed for 27 green banks in twelve countries to start in 2020 and another 25 countries are expected to follow soon. Three out of five bank customers in the UK state that they want their bank to “do more to create a positive social and environmental footprint”. By giving the individual customer increased transparency with the help of cloud services, banks can build apps that give customers the opportunity to get an overview of the climate footprint of their consumption. This makes it easier to make climate-neutral purchasing and investment decisions. It is simply a matter of harmonizing environmental awareness with wise and stable financial decisions.
A key component in the transition
One of the banks’ major challenges is to determine which companies are genuinely focused on climate-neutral imprints and which ones use “greenwashing” to appear more attractive to invest in. Fortunately, there is now more transparency than ever before. The Dow Jones Sustainability Index (DJSI) and the Carbon Disclosure Project (CDP) have proven to work well and rate leading companies that live up to ESG. The banking sector currently has the opportunity to drive change in an environmentally friendly direction by leading by example. With climate-conscious banks, their customers can develop into smart and sustainable organizations. One bank that does just that is Canadian EQ Bank, which is entirely run in the cloud. The bank recently declared that it has become completely climate neutral. The bank’s CEO, Andrew Moor, stated that “enriching Canadians’ lives can and should take place in parallel with the transition to lower carbon dioxide emissions”. Cloud-based solutions are a key component in this whole transformation. And that’s exactly what it’s about: innovations and meeting environmental challenges go hand in hand. Digitization depends on sustainability. And vice versa.Read more about Temeno’s world-leading software solutions for banks
Temenos AG is a company specializing in corporate software for banks and financial services headquartered in Geneva, Switzerland. Temenos was originally created in 1993 and has been listed on the Swiss stock exchange since 2001.This is how Temenos works with sustainability The article is produced by Brand Studio in collaboration with Temenos and not an article by Dagens industri