"It means that operators in the sector must consider other factors, outside their usual 'core business', such as investment in green technologies and in the publicized carbon market, when financing projects and companies that seek sustainable solutions", said the Secretary of State of Climate Action, Paula Coelho.
For the official, who was speaking at the opening of the 1st Conference on Sustainability in Banking, by supporting socio-environmental initiatives, banking "not only promotes the transition to a low-carbon economy, but also opens up business opportunities".
And "it boosts sustainable development, thus contributing to the construction of a circular economy, more balanced and fair", she said.
The conference promoted in Luanda by the Angolan Association of Banks (Abanc) has the theme "ESG ['Environmental, Social and Governance'] and Sustainability in Banking".
According to Paula Coelho, the ESG (set of criteria used to assess the performance of companies in relation to environmental, social and corporate governance issues) is "closely related" with the 17 goals of sustainable development (SDG).
The main connection between these two concepts (ESG and SDG), she explained, "is in the fact that companies have a relevant social function and must increasingly make this position felt, in the face of today's main global challenges".
She defended the need for financial operators to incorporate ESG in their actions, as she understood it to be an issue that has to do with the future of the planet and sustainable development.
In her speech, she said that the Government recognizes the country's vulnerability to climate change and "is aware" of the impacts it has been suffering and the tendency to get worse.
"The country has registered, among other effects, recurrent cycles of droughts and floods that have been affecting the different regions of the country in different ways, with consequences at an environmental, social and economic level and with more incidence in the regions located to the south", noticed.
With a view to mitigating and adapting the country to these realities, the Secretary of State explained that several instruments have been approved, such as the National Adaptation Action Program of Angola, the National Strategy for Climate Change 2022-2035 and others.
Paula Coelho understood, on the other hand, that as Angola faces the challenges of climate change, it is essential that the financial and banking sectors play a fundamental role in mobilizing resources.
Climate finance refers to all types of local, national and international finance "that can be channeled through public, private and other sources to combat climate change", she pointed out.
She also referred to the "small" lines of financing for mitigation measures and adaptation to climate change that Angola has, noting that the main instrument used by the Government for the management and conservation of the environment has been, until now, the Fund National Environment.
Additionally, there are other instruments and funds capitalized via the State Budget that support climate projects and programs, she argued.
She also considered that banks can use their resources and knowledge to assess the viability and merit of projects, ensuring that they are aligned with sustainability and social responsibility criteria.
"Furthermore, the relationship between climate finance funds and banking helps to mitigate the risks associated with sustainable projects. The collaboration between climate finance funds and banking also drives innovation", concluded the official.
