“Sustainable finance solutions are playing a key role in mitigating climate risks” – Arvana Singh

Bronwyn Nielsen connected with Arvana Singh, who leads Sustainable Finance Solutions at Nedbank CIB at WEF 2023 in Davos. Singh holds extensive investment banking and sustainable finance experience. She explains how sustainable finance solutions are key to mitigating climate change risks.

Arvana Singh on how sustainable finance solutions help mitigate long-term risks associated with climate change

Sustainable finance solutions are crucial in combatting  against some of these risks. This is done through the key performance indicators attached to the debt, which is often linked to a reduction in greenhouse gas intensity or an overall reduction in greenhouse gas emissions. There are specific targets, which are set and embedded into the facilities, that are measured at predetermined dates. This is all supportive of decarbonisation in the short to medium term, and that in turn will assist in fulfilling a system in slowing down the effects of climate change.  

The sustainability-focused revolving credit facility linked to Old Mutual

This particular facility focuses on two key themes: carbon reductions and an increased investment within Old Mutual’s supply ecosystem as well as outside of that system.  

Whether sustainable finance solutions are the optimal way to service clients 

This is an optimal way as it meets a dual purpose; the one is securing the financing and, secondly, being able to move forward towards a shared objective . That shared objective then leads to a wider systems objective, which can ultimately provide a more thriving backdrop to continue to do more business.  

Nedbank’s Sustainable Finance Solutions linked to the Sustainable Development Goals of the UN

The Sustainable Development Goals is a framework of preference for us. We always look to align our objectives in terms of our financing solutions with the likes of the SDGs. We also complement and supplement that with other frameworks of reference in order to get to a robust product and solution in the context of materiality and relevance to the borrower and the industry in which we operate.  

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