Why climate resilience matters
Building climate change resilience: A preview of Sibos 2024 panel discussion
Climate change is disrupting economies, threatening health, and widening social inequality. The connection between climate resilience, social welfare, and sustainable development is clearer than ever. I’m excited to join a panel of experts from BNP Paribas and EY at Sibos 2024, to discuss these intertwined issues. Together we’ll explore the role of technology and the innovative approaches being adopted around the world to tackle challenges posed by a changing climate.
Understanding the Connection
Climate change, social welfare, and sustainable development are linked. According to the UN’s 2023 Sustainable Development Goals (SDG) Report, 700 million people still live in extreme poverty, and climate change could push 100 million more into poverty by 2030.
The most vulnerable populations, especially in developing countries, are hit hardest. Extreme weather events like floods, heatwaves, and droughts impact health, destroy crops, and damage infrastructure. This increases poverty and deepens inequality. Climate change is not just an environmental crisis but a social one.
Addressing it requires a mix of climate action, social protections, and sustainable development strategies. The financial sector plays a vital role by funding projects that support environmental sustainability and social equity. Investments in renewable energy, sustainable agriculture, and green bonds help drive capital to areas that need it most.
Why Climate Resilience Matters
Developing nations are especially vulnerable to climate disasters, which devastate infrastructure and agriculture, leaving people without food or livelihoods. Building resilience to climate change protects economies, communities, and ecosystems, and supports the SDGs, including the achievement of zero poverty and zero hunger. Investing in climate resilience helps communities better withstand disasters and recover more quickly. For example, climate-smart farming teaches farmers how to adapt to unpredictable weather while protecting their income. Urban green infrastructure, such as parks and sustainable drainage, cools cities and manages stormwater, improving both the environment and public health.
Technology’s Role in Climate Resilience
Technology is a key enabler in the fight against climate change, especially for financial institutions. By using digital solutions, banks can reach underserved communities impacted by climate change. Mobile banking, for instance, allows banks to provide financial services to people in remote areas where physical branches don’t exist.
Cloud technology improves efficiency, allowing banks to offer affordable services to low-income areas. AI helps identify sustainable investment opportunities, enabling banks to create green bonds and other products that support climate resilience. These technologies allow financial institutions to make a bigger impact on social equity and environmental sustainability.
However, there’s a downside—technology has its own carbon footprint and tech giants are already seeking low-carbon energy sources for their power-hungry AI systems.
Social Cohesion as a Pillar of Climate Resilience
Technology and infrastructure are essential, but social cohesion is equally important in building climate resilience. Communities that are environmentally aware and work together to face climate challenges tend to be more resilient. Research shows that strong community ties can lead to greater climate action and better adaptation to change.
How do we build social cohesion? Through inclusivity, collaboration, and education. Community-based solutions involve local people in planning and implementing climate strategies. This ensures the solutions are tailored to local needs and gives people a sense of ownership.
Education is also crucial. Teaching sustainable habits early on can help people develop their “green muscle memory,” making environmentally friendly choices second nature. Supporting public campaigns can raise awareness about the benefits of circular economy, the need for energy conservation, and the importance of biodiversity preservation. Leaders in government, business, and education should recognize and promote the beneficial outcomes of climate education, as these ‘’green’’ behaviors will also work their way into all industries in the future, leading to significant reductions in carbon emissions.
Join us and hear more at Sibos 2024
I’m very much looking forward to sharing and hearing the views of the panel at Sibos on this important topic. It promises to be an engaging discussion on how we can combine financial innovation, social cohesion, and climate action to create a more resilient world. The future depends on our ability to not only address the environmental aspects of climate change but also its impact on communities and economies.
Join Temenos at SIBOS 2024
Temenos is excited to be back at SIBOS 2024 which is taking place in Beijing, China from 21 to 24 October at China National Convention Centre (CNCC). Gathering with thousands of banking professionals, technology pioneers, this year’s SIBOS debates the theme “Connecting future of finance”.
Book a meeting now and visit stand C25 to meet Temenos experts, let’s explore together the next trend on payment, SaaS and banking innovation.