Natixis leads way with green/brown capital tilt

By Jon Hay
24 Sep 2019

Natixis has become the first bank to introduce a green weighting factor to its internal capital model, so that the way it prices loans is skewed to favour environmentally sound assets and disadvantage polluting ones. The ground-breaking move brings to fruition an 18 month project and anticipates what some believe may one day be demanded by regulators.

The idea is to create a financial incentive, embedded in the bank’s systems, that will encourage Natixis’s bankers to lend more to green projects and companies, and less to high carbon or environmentally damaging ones.

Apart from loans to financial institutions, and those to clients where Natixis has ...

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