Climate change presents a major risk to the global economy and requires system-wide changes, including in the financial sector. Financial institutions increasingly understand the risks and opportunities imposed by climate change. The Task Force on Climate-related Financial Disclosures (TCFD) was created to improve and increase reporting of climate-related financial information.
Within this framework, the eco.business Development Facility is currently working with Banco Pichincha in Ecuador in the development of the bank’s climate change strategy to ensure the organization governance around climate related risks and opportunities, the use of scenario analysis to evaluate the potential impact on its portfolios, the transition to a net zero economy and the development of green financial products. The strategy sets out how the Banco Pichincha mandate on climate change will be implemented with its end borrowers in line with the Paris Agreement.
Banco Pichincha supports the goal to achieve net-zero emissions by 2050 and recognizes the challenges and complexity associated with a net-zero emissions pathway. The strategy outlines an action plan and targets for reducing greenhouse gas (GHG) emissions, both in its own operations and in lending activities.