Sustainability Magazine September 2023 | Page 16

INTERVIEW WITH

STELLA FAU CLARKE

STELLA FAU CLARKE , CHIEF STRATEGY OFFICER AT FENERGO , DISCUSSES HOW FINANCIAL INSTITUTIONS CAN BETTER ALIGN THEMSELVES TO MEET CLIMATE GOALS
Q . IN YOUR OPINION , HOW CAN FIRMS BETTER ALIGN THEMSELVES TO MEET CLIMATE GOALS ?

ยป Financial institutions ( FIs ) play a pivotal role in driving sustainable development and helping society transition to a low-carbon economy .

To better align themselves with climate goals , these institutions should embrace a multifaceted approach , focusing on three key areas : risk management , investment strategies , and collaborative action .
Firstly , FIs must enhance their risk management frameworks to incorporate climate-related risks and opportunities . This entails conducting rigorous assessments of their portfolios to identify and address climaterelated exposures , ensuring transparent reporting , and integrating climate considerations into their decisionmaking processes . By understanding and proactively managing climate risks , these institutions can safeguard their own financial stability while contributing to a more sustainable future .
16 September 2023