IFR interviews Natixis’ Orith Azoulay on the climate transition and the bank’s efforts to make balance sheets more green
February 27, 2020
Speaking to IFR, Orith Azoulay – Global Head of Green and Sustainable Finance at Natixis CIB – discusses the bank’s proactive approach to managing climate risk on its balance sheet. Natixis’ introduction of its Green Weighting Factor, which rates all financing activities on a seven-tier scale from brown to green, is already fruitful, placing the bank at the forefront of attempts to make balance sheets more green.
“We’re starting to make these colour ratings speak. We’re taking those colours and comparing them to risks, profitability metrics and client understanding”, explained Azoulay. When the Green Weighting Factor was introduced, the bank’s risk weighted assets were 25% green, 25% neutral and 50% brown, with Natixis now wanting to transition brown companies and its balance sheet towards green.
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TAGS: Financial Services