21 financial institutions agree to fund green projects
What you need to know:
- Green financing is to increase the level of financial flows (from banking, micro-credit, insurance and investment) from the public, private and not-for-profit sectors to enhance sustainable development priorities.
To guard against climate change, 21 financial institutions have agreed to raise Sh21 million to fund environmental friendly projects being undertaken by women and the youth.
Green financing is to increase the level of financial flows (from banking, micro-credit, insurance and investment) from the public, private and not-for-profit sectors to enhance sustainable development priorities.
The move by the finance institutions to raise the money is in line with Environmental Social and Governance, which has become so important for both private and government institutions to pay attention to mitigating environmental degradation that is leading to climate change.
Environmental, Social and Governance (ESG) associated opportunities and risks are becoming more relevant for financial institutions.
Ms Goretti Masadde, the chief executive officer of The Uganda Institute of Banking and Financial Services (UIBFS) said: “Today (Thursday), we have commenced the Institutional Savings Challenge where UIBFS, UBA (Uganda Bankers’ Association), Bank of Uganda, member banks, financial sector regulatory bodies and financial institutions and partners are going to save towards Financing a Green Youth / Women business or project.”
Ms Masadde said each of the 21 participating financial institutions are expected to save Shs 1 million within two weeks.
“At the end of the challenge, the Panel shall receive pitches from various Youth and Women Projects and select winners to be awarded at the 2023 World Savings Day Commemoration. In addition, the best contributing institution will also be recognized on October 31 2023,” she said.
“The objective is to motivate and enable the public to save and achieve their short to long term aspirations. While people wish to and endeavor to save, many times they don’t think they have enough to save. By embracing a green smart life one releases resources that can be saved, invested and or stretched to cover more needs that can change something," he added.