Filene Research Institute’s Post

Our guide for Canadian #creditunions emphasizes the importance of understanding directors’ duties, cooperative principles, and the profound effects of extreme weather events on credit union members. It is a valuable resource for directors in understanding the legal landscape, physical and transition risks associated with climate change, and best practices developed globally. It offers practical suggestions for board oversight and emphasizes the importance of engaging with members to align their credit unions’ commitments with transitioning to a more sustainable economy. Download it here: https://lnkd.in/gU9rDTWN Canadian Credit Union Association, Helen Alexandra Joan Tooze

Local credit unions, under the leadership of the Central Finance Facility (CFF), have joined with the InterAmerican Bank (IDB) to build TT’s resilience to climate change. A release from the CFF said it has, along with PECU Credit Union, Teachers Credit Union and Venture Credit Union, collaborated with IDB and Global Finance of Canada to facilitate green financing to businesses and consumers. “The effects of climate change are hitting us very hard in TT,” the release said. “We have all experienced it either directly or have seen the horrific destruction caused by widespread flooding in various communities. We are definitely seeing changes in our weather patterns and these can be directly attributed to climate change.” It said the adverse weather conditions have caused damage to property, threatened food security in TT and the Caribbean and caused loss of life. The CFF said recognising the impeding economic and social impact of climate change for credit union members prompted it to start conversations with the IDB lab, which had developed a programme for countries likely to be affected by climate change. Click here to read more: https://lnkd.in/ep5AYfkx

Did you know 97% of our members agree that Glasgow Credit Union helps them maintain a regular savings habit? 😊 Our Member Survey 2024 highlighted that we help our members save regularly either through their wages or Direct Debit. Helping build our members' financial resilience is a big part of our ethos and it's great to be able to help our members save for the future. #Creditunion #Creditunionsuk #Westofscotland #Creditunionuk #Financialwellbeing

In the face of rising climate risks, credit unions can provide much-needed community support. Our latest blog post explores how credit unions are transforming climate risks into opportunities for resilience, growth, and lasting community impact. From understanding physical and transition risks to enhancing financial resilience, learn the strategies driving credit unions towards a sustainable, climate-resilient future → https://bit.ly/46fYe3Q #ClimateResilience #CreditUnions #CommunityImpact

You might think you can't prevent fossil fuel investments, but where you bank makes all the difference. 💲 At least a few times a year, I tell people to bank with credit unions which invest in local communities. Banking with a big corp almost guarantees you're investing in all the unethical industries out there. Unless you commit to not driving or using gas for heat, banking with a credit union is one small thing you can do to prevent fossil fuel investments. ["Our climate can’t afford a single new fossil fuel project—yet big banks spent over $347 billion on fossil fuel expansion in 2023. . . . We demand they #DefundClimateChaos NOW." May Boeve, Executive Director, 350.org #FridaysForFuture] #ClimateChange #ClimateEmergency #ClimateCrisis

West Virginia said Thursday that it would no longer do business with five financial institutions over their pledges to fight climate change by reducing financing for fossil fuel projects. This is the first time a state has severed financial ties with major financial institutions over policies to reduce the emissions of planet-warming greenhouse gases, the New York Times reports. The decision, announced by West Virginia Treasurer Riley Moore, will prevent BlackRock, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo from receiving state banking contracts from Moore's office. "As state treasurer, I have a duty to act in the best interest of our state and its people," Moore said in a video uploaded to social media. "Any financial institution that has broad, sweeping policies that will harm our economy, tax base and energy jobs has a clear conflict of interest in handling our tax dollars," he added. "If a financial institution does not want to do business with our people, I don't think we should give them our business either." “I simply cannot stand by and allow financial institutions working against West Virginia’s critical industries to profit off the very funds their policies attempt to diminish," he said in a statement. Moore was given the authority to add financial institutions to a "Restricted Financial Institution List" and bar them from doing business with the state by a law passed by the West Virginia legislature last year. After the law was passed, Moore's office originally identified six institutions, but U.S. Bancorp was not listed because eliminated its policies against financing coal mining, coal power and pipeline construction activities. #banking #restrictions #climatechange #policy

The results suggest that lenders perceive environmental risk as a material risk factor. We also show that banks only account for the salient and direct environmental impact of their borrowers, controlling for other known sources of risk and loan characteristics. This environmental rate sensitivity is concentrated on those borrowers in states where climate denial is low. An important implication of our study is that the pricing adjustments of climate transition may depend on local beliefs and enforcement rather than on rules. In a regulatory environment where firms are unlikely to face local pressure, and climate risk is seen as dubious, this paper shows that banks are also less likely to adjust their cost of credit.  #climatefinance https://lnkd.in/e_gENeFp

In the light of the Prime Minister's statement last week, if your business is no longer sure that Net Zero and climate change are such urgent priorities, consider that the Bank of England is trying to plan for the worst. Despite Rishi Sunak's insistence that the UK is on course to meet it's Net Zero commitments (ClientEarth are currently taking them to court to prove that they are not), which might suggest that climate change is under control, others are taking things rather more seriously. When the Bank of England wants to stress test the City's financial insititutions to make sure that they could cope if Westminster was flooded due to climate change, you know that this isn't something we should be "putting off". So, don't be like the government, make sure your business has workable Net Zero plans with near and medium term targets....or start building your flood defences! BTW, I can help you with the former, but for the latter you will need some serious civil engineering support! #Netzero #Decarbonisation #Climatechange https://lnkd.in/eftyXrpy

Three US Senators have sent a powerful letter to The World Bank President, urging the bank to: 📉 phase down fossil fuel investments, including indirect financing through intermediaries & policy-based lending 🌤 improve transparency & accountability in financing decisions 🔓 ensure direct access to the Loss & Damage fund for climate-affected communities In their letter to Ajay Banga, Senators Martin Heinrich, Ed Markey & Sheldon Whitehouse wrote: “While the World Bank committed to align its financial flows with the goals of the Paris Agreement in its Climate Change Action Plan 2021-2025, the Bank provided an average of $1.2 billion annually between 2020 and 2022 in direct fossil fuel finance. Although direct financing for fossil fuels has decreased over time, the Bank continues to provide indirect financing for fossil fuel projects through financial intermediaries, as well as technical assistance, policy-based operations, and trade finance.” “The Bank’s direct and indirect support for fossil fuel projects supercharges the climate crisis while decreasing lending capacity, leverage capital, and availability of climate financing for developing countries. The Bank must provide more transparency in fossil-fuel-project financing decision-making, including making its process public, in order for there to be needed accountability.” Read the full letter below 📩 #lossanddamage #climate #worldbank #springmeetings #WBGMeetings #EndFossilFinance!

Building financial resilience worldwide is a shared goal and credit unions are playing a key role in this mission🌎 Take a look at how #CreditUnions around the world are empowering communities and individuals to thrive financially🙌 https://lnkd.in/e6aS6DdJ