Banking on EIB to Lead Sustainable Finance to Impact the Climate Emergency

Van Wassenhove Luk; Fernando Ravi

Product #:IN-2308

Supplier:INSEAD

Discipline:General Management

Setting:Europe

Details:Case (PDF) • 16 pages • 2021-04-23

Industries:

Financial service sector

Geography:

Europe

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$9.71

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The 2015 Paris Agreement, signed by all 195 UN signatory nations, put a global focus on the impending climate emergency, with a mandate to achieve nationally determined commitments (NDCs) to exit fossil fuels and accelerate financing of global sustainability projects. The European Investment Bank (EIB), positioned as “Europe’s climate bank” has long been a champion of financing sustainable projects in Europe and beyond. The case follows its journey from the innovation of ‘green’ bonds in 2007, to the game-changing announcement that it will cease investment in fossil fuel projects from 2021. The focus is on how sustainability has been embedded in its corporate strategy under president Werner Hoyer, and how the EIB has set a global benchmark for sustainable finance to impact the climate emergency. Can it inspire the global finance community to follow suit?

Learning Objectives

1) To demonstrate how a sustainbility mindset/leadership can inspire an organization to embed sustainability in its strategy. 2) Showcase strategic initiatives that demonstrate EIB’s commitment to sustainable investment and its impact. 3) Inspire the global finance community to follow the EIB example. 4) Confront students with the urgency of the climate emergency and the need to minimize the impending devastation.