Climate change is of major concern to both individuals and business and both are seeking ways to contribute positively to reducing carbon emissions and increasing sustainability. In response to this increased awareness, some financial services sectors have adopted policies and provide products to address this demand.
Green finance is a broad definition which encompasses both investment and financial instruments which are dedicated to environmentally responsible products, services and initiatives. Products may include green-tagged loans, green bonds, climate risk insurance, green investment funds and loan products targeted at funding the low carbon economy.
The Australian Sustainable Finance Initiative www.sustainablefinance.org.au was established to bring together leaders in banking, lending, insurance, superannuation, academia and other interest groups to provide a way forward for financial services to better support better environmental outcomes.
Investment vehicles are increasingly including a greater percentage of ‘green’ investments to satisfy investor demands with some companies specialising in this space by exclusively investing in green projects. Green chip stocks are described as shares in businesses in areas such as pollution control, renewable energy, reduction of carbon emissions and other areas.
In the lending sector, some finance providers offer discounts to business for the purchase of products and in initiatives that support energy efficiency and environmental sustainability. Such schemes include commercial finance loans for the purchase of low carbon emission vehicles.
To source green finance for your medical equipment purchase or your medical business loan, you can discuss the options from individual banks and lenders or your finance broker.