Against a background of regulatory uncertainty, this article contends that voluntary action by the banking industry has potential to facilitate climate change mitigation and the transition to a low-carbon economy. This potential manifests in two ways. First, it evidences the relationship between the banking industry and climate change by focusing on three hallmarks of banking business, namely risk assessment, financing and profiteering. Secondly, it shows how banks in their role as creditors, investors, advisers and heads of supply chains can influence the business practices and greenhouse gas emissions of other corporate actors. Thirdly, it contends that exponential corporate emissions reductions could flow from bank practices that influence client and supplier networks in an ever-widening web. In so doing, this article also examines how environmental regulation - both soft and hard - can mobilise the full potential of the banking industry.
|Pages (from-to)||448 - 468|
|Journal||Environmental and Planning Law Journal|
|Publication status||Published - 2010|