Environmental awareness on the rise within financial sector
The Liechtenstein financial sector took part in the international PACTA climate compatibility test.
The results show that the country’s financial institutes continue to invest heavily in fossil fuels. Nevertheless, many are developing or already pursuing sustainable environmental strategies.
Last year, Liechtenstein underwent a voluntary climate compatibility test for the first time, as the Ministry of General Government Affairs and Finance writes in a press release. In specific terms, the country’s financial sector took part in PACTA 2020, an internationally coordinated climate compatibility test. With 14 financial institutions involved in the process, participation was “below expectations”, according to the press release. However, the fact that leading banks took part means that the results provide a decent indication of the financial sector’s development.
The results of PACTA 2020 indicate that there is room for improvement, the Ministry states in the press release. Specifically, the test revealed that investments directly related to the extraction of oil, gas and coal make up between four and seven percent of the portfolios of the participating banks. In contrast, however, the auditors painted a more positive picture of investments in the production of electric vehicles.
A supplementary survey of the participants also revealed a growing trend towards climate awareness within the financial sector, the press release explains further. Just under nine out of every ten banks indicated that they are already pursuing a sustainable environmental strategy or are in the process of developing one. Three quarters of the participating financial institutions are also members of at least one organization that focuses on sustainable investment activities.
Alongside the results, the PACTA 2020 participants were also presented with an interactive framework for planning and implementing climate measures. Known as the Climate Action Guide, the press release explains that this could be particularly useful when seeking to comply with future obligations, such as EU regulations, for example.
