Green finance is now be a key consideration for business leaders, but aligning relevant objectives with capital allocation is far from straightforward
Defined by the World Economic Forum as any structured financial activity created to ensure a better environmental outcome, green finance – also known as sustainable finance or climate finance – is firmly in the spotlight as countries across the globe attempt to play their part in the fight against global warming.
Clearly, conversation was amplified by the Paris Agreement of 2015, which reaffirms that developed nations should take the lead in providing financial assistance to those “less endowed and more vulnerable”.
From a business perspective, the pressure is on companies big and small to align financial activities with responsible practice and prioritise investments in environmentally-friendly initiatives.
As CFO of IFS, a global leader in enterprise software development, Matthias Heiden is – needless to say – in tune with the green finance responsibilities of today.
“Green finance promotes environmentally sustainable practices and investments,” he says, offering up his own explanation.
“In essence, it’s about integrating environmental considerations into financial decision-making processes, which aligns with our commitment to delivering value while contributing positively to the environment through innovative software solutions and responsible investments.”
Describing his ongoing work in the space, he adds: “As a CFO, I support transformations like ESG reporting and the move toward green financing. I manage financial portfolios or investments in a manner that favours environmentally responsible projects and aligns with our own sustainability goals.
“I also allocate resources to develop solutions that help both our organisation and our customers monitor and reduce environmental impacts. This includes tools for energy efficiency, carbon emissions tracking, or sustainable supply chain management practices.”
