# Applying a sustainable lens to the financial industry’s future
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-02-20
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Why Financial Organisations Must Embrace Sustainability
Meta Description: Learn how financial organisations can play a vital role in addressing climate change through small, impactful changes in their business processes and services.
URL: https://financedigest.com/applying-a-sustainable-lens-to-the-financial-industrys-futurehtml

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_By_ **_Alex Lawson,_** _Regional Director of Hedging – UK and Europe at Western Union Business Solutions_

![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/alex-lawson-regional-director-of-hedging-uk-and-europe-at-western-union-business-solutions-1736816203173-compressed.jpg)

Alex Lawson, Regional Director of Hedging – UK and Europe at Western Union Business Solutions

No single organisation can solve sustainability on its own; it is a collective effort, and every business has a role to play. Within the wider [world of finance](https://www.financedigest.com/six-reasons-why-digital-world-classtm-finance-organizations-outperform-peers.html "Six Reasons Why Digital World ClassTM Finance Organizations Outperform Peers"), we are in a transition phase when it comes to sustainability.  We are gradually challenging pre-conceptions about financial organisations’ duty to take a stronger, more active [role in the fight against climate](https://www.financedigest.com/inflation-fighting-central-bankers-air-climate-role-doubts.html "Inflation fighting central bankers air climate role doubts") change – but more can, and must, be done.

Across industries, businesses are increasingly facing pressure from customers and partners who are looking to work with organisations that are applying a [sustainable](https://www.financedigest.com/which-kpis-should-a-budding-business-focus-on-for-sustained-growth.html "Which KPIs should a budding business focus on for sustained growth?") lens to their business processes. Often, change can occur from functions the organisation is already running, or [services they already offer](https://www.financedigest.com/barclays-sets-up-taiwan-subsidiary-to-offer-brokerage-services.html "Barclays sets up Taiwan subsidiary, to offer brokerage services"), allowing for easy, yet impactful, action.

So how, and why, should [financial organisations be applying sustainable practices to their business](https://www.financedigest.com/financial-advice-for-starting-your-own-business.html "Financial advice for starting your own business")?

**Finance as a force for good**

In 2020 the total number of people employed in the financial services sector in the UK amounted to [approximately 1.1 million](https://www.statista.com/statistics/298370/uk-financial-sector-total-financial-services-employment/). We are one of the [driving forces of the UK economy and as an industry](https://www.financedigest.com/car-sharing-industry-revs-up-with-wembley-park-residents-in-the-driving-seat.html "Car sharing industry revs up with Wembley Park residents in the driving seat"), we have significant influence. With that comes great responsibility to [set a good example](https://www.financedigest.com/lights-off-heat-down-central-europe-governments-save-power-to-set-example.html "Lights off, heat down: central Europe governments save power to set example"). In the wake of COP26, customers and [partners alike are increasingly looking to work with companies that are embedding sustainable](https://www.financedigest.com/miq-partners-with-seenthis-to-advance-sustainability-in-digital-advertising.html "MiQ Partners with SeenThis to Advance Sustainability in Digital Advertising") practises into their work. [Financial organisations](https://www.financedigest.com/can-financial-services-organisations-harness-data-and-bi-to-catch-up-in-the-digitalisation-race.html "Can financial services organisations harness data and BI to catch up in the digitalisation race?  ") cannot afford to ignore this move.

For both reasons, it is incredibly important that we respond to the [changing direction of the world’s priorities and shift our attention to the imminent environmental threat facing](https://www.financedigest.com/the-changing-face-of-peer-to-peer.html "THE CHANGING FACE OF PEER-TO-PEER") our planet. Going into 2022 and beyond, it is imperative that as an industry, we are able to [put on a united front and demonstrate that finance](https://www.financedigest.com/cop26-coalition-worth-130-trillion-vows-to-put-climate-at-heart-of-finance.html "COP26 coalition worth 0 trillion vows to put climate at heart of finance") can be a force for good.

**Applying a sustainable lens**

Far too often, businesses assume that in order to make a significant difference to the [climate change](https://www.financedigest.com/deloitte-research-reveals-inaction-on-climate-change-could-cost-the-worlds-economy-us178-trillion-by-2070.html "Deloitte research reveals inaction on climate change could cost the world’s economy US8 trillion by 2070") effort, they need to make grand gestures, roll out business-wide sustainability programmes or pioneer new initiatives. In reality, sometimes the most [impactful results can often come from making small changes to existing functions](https://www.financedigest.com/impact-com-announces-new-product-functionality-for-b2b-saas-through-partnership-with-hubspot.html "impact.com announces new product functionality for B2B SaaS through partnership with HubSpot") the organisation is already running, or services they already offer.

One of the easiest ways to make a [positive impact](https://www.financedigest.com/broadcast-switchers-market-increasing-adoption-of-ip-live-production-technology-to-positively-impact-growth.html "Broadcast Switchers Market: Increasing Adoption of IP Live Production Technology to Positively Impact Growth") is through ongoing work with customers. [Day in and day out innumerable financial](https://www.financedigest.com/personal-finance-fasten-your-seatbelt-tighten-your-belt-that-rainy-day-is-here.html "Personal Finance: Fasten your seatbelt, tighten your belt, that rainy day is here") transactions occur. It therefore makes sense to look at how they can be adapted so that small incremental [changes create](https://www.financedigest.com/entrepreneur-investor-dale-w-wood-shares-how-he-is-using-his-funds-to-create-change.html "Entrepreneur & Investor Dale W Wood Shares How He Is Using His Funds to Create Change") a significant cumulative effect. For instance, we are now enabling all new and existing [customers to support sustainable initiatives as part of their existing foreign exchange hedging strategy](https://www.financedigest.com/why-equipment-assets-should-be-the-source-of-your-customer-strategy.html "Why Equipment Assets Should Be The Source of Your Customer Strategy"). By making a small adjustment to the rate achieved on a planned hedge transaction, [funds are generated and invested in climate](https://www.financedigest.com/g7-launches-climate-shield-fund-some-countries-wary.html "G7 launches climate ‘Shield’ fund, some countries wary") and sustainability initiatives selected by the customer, who then receive certified carbon offsets in return.

This alone can make a significant difference to these sustainable causes, but [financial organisations can further amplify this impact](https://www.financedigest.com/how-mifid-ii-will-impact-financial-advisor-communications.html "HOW MIFID II WILL IMPACT FINANCIAL ADVISOR COMMUNICATIONS"), which is why we match the customer’s donation, with the customer receiving full credit. Whilst simple, if every financial organisation – big, medium and [small – re-evaluated existing business](https://www.financedigest.com/10-dirty-tricks-for-small-businesses-to-watch-out-for-when-negotiating.html "10 dirty tricks for Small Businesses to watch out for when negotiating") processes and applied a sustainable lens, the resulting impact could be far greater than one grand initiative.

**A trusted partner**

However, there is no denying that in the finance world, [customer confidence](https://www.financedigest.com/instilling-customer-confidence-in-the-pandemic-era.html "Instilling customer confidence in the pandemic era") is imperative to business transactions and proceedings which is why when it comes to incorporating sustainable initiatives it is essential, for both customer belief and the wider global picture, that these initiatives are making a real, genuine impact.

This is why opting to [work with an accredited organisation](https://www.financedigest.com/uk-based-bitfount-raises-5m-seed-to-streamline-collaboration-between-organisations-working-with-sensitive-datasets.html "UK-based Bitfount raises M seed to streamline collaboration between organisations working with sensitive datasets.") that embodies best practice for climate and sustainable development initiatives, can prove invaluable in ensuring an organisation’s customers can be confident in the integrity of every green investment made.

There are a variety of organisations that are dedicated to identifying sustainable and climate initiatives that are designed to quantify, verify, certify and maximise progress towards the UN’s Paris Climate [Agreement and the Global](https://www.financedigest.com/visa-has-terminated-global-debit-card-agreements-with-ftx.html "Visa has terminated global debit card agreements with FTX") Goals for Sustainable Development. For instance, we [partnered with Gold](https://www.financedigest.com/uk-gold-investment-startup-minted-partners-with-lux-rewards.html "UK gold investment startup, Minted, partners with LUX Rewards") Standard, a recognised climate and sustainability pioneer, to roll out our Green Hedging product. The benefit of such partnerships is that [financial organisations](https://www.financedigest.com/cloud-migration-for-financial-services-organisations-whats-the-best-approach.html "Cloud Migration for Financial Services Organisations – What’s the best approach?"), and their customers alike, can rest assured that their work is having maximum impact. What’s more, the [business can leverage the relevant insights and expertise to expand and develop](https://www.financedigest.com/reasons-to-hire-a-web-developer-for-your-business-website.html "Reasons to Hire a Web Developer for Your Business Website") future sustainable initiatives.

Going into 2022, we hope to see more businesses layering over a sustainable lens to existing business processes, and in doing so, this movement will increasingly demonstrate how the world of [finance can contribute to sustainability](https://www.financedigest.com/sustainable-finance-the-wave-of-the-future.html "Sustainable Finance: The Wave of the Future") efforts swiftly.


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