In this workshop, we will discuss how the financial sector is responding to this goal and how it embraces the broader ESG challenges. A key role of the financial sector is to support individuals, SMEs, large companies as well as policy makers, which makes it arguably the most important sector when it comes to net zero and sustainability.
Vera Spender Koubek, Moderator
The race to net zero is on. We have eight short years to meet perhaps the most ambitious goal in human history. The Czech Republic remains the fourth-largest emitter per capita in the EU and to reduce emissions by 55% before 2030, in line with the EU pledge, will require additional investments of CZK 500 billion. In this workshop, we will discuss how the financial sector is responding to this goal and how it embraces the broader ESG challenges. A key role of the financial sector is to support individuals, SMEs, large companies as well as policy makers, which makes it arguably the most important sector when it comes to net zero and sustainability. We will focus on the current ESG trends as well as future plans and we will discuss how creating sustainable corporate action can mitigate risks and brings social, environmental as well as economic benefits
ESG is not a recent trend, the concept has been developing over the last three decades. A substantial number of new ESG regulations and disclosure requirements were introduced earlier this year, and more is to come. It is a change of paradigm and a learning curve for many organisations. Capacity building, governance and sustainability due diligence are some of the main needs in the Central Europe region.
The recent macroeconomic pressures in the Czech Republic have been quite dramatic, although a recession is unlikely. The developments are mainly driven by the energy sector and the war in Ukraine. We may need to temporarily intervene in the carbon credit market to keep energy affordable in the short term but we should not lose sight of long term Environmental, Social and Governance (ESG) goals.
ESG measurements can be a catalyst for change even in an industry where carbon emissions are challenging to tackle. In the construction industry, sustainability means an efficient use of natural resources, revitalization of existing urban areas, circular economy and use of renewables. Science Based Targets initiative (SBTi) provides useful guidelines.
The panel was focused on lending money and transforming existing business
Being an entrepreneur is not a skillset, it is a mindset. A mindset can be both a blocker or an accelerator. Orka Ventures is a good example how a change in mindset can lead to the creation of a successful multinational company. There are many excellent startup ideas, and every business can – and should – be an ESG business.
The Climate Fund, Gov’t organization boosting sustainable growth
The Finnish Climate fund is delivering the very ambitious net zero goal set by the Finnish government. Although climate change may not be happening in the metaverse, we will will not reach net zero without digitisation. There is enough startup money in Europe in spite of venture capital being impacted by inflation and war in Ukraine like any other segment.
from both panels