Corporate Depositors Have a Reason to Care About Their Banks’ Financed Emission Risks
July 04, 2022 | Updated at July 04, 2022
By Dr. Eman Tabet, Research Associate, RFI Foundation
Companies with large holdings of cash in banks are more exposed than they might think to financed emissions risks. Unlike retail depositors, they have more options but also more risk in managing their large cash balances, and must become even more attuned to the risks they take in pursuit of higher returns.
An estimate of large technology companies has found that they had much more emissions exposure from their cash deposits than from their operationsSome companies may be more effective in reducing their emissions footprints by advocating for responsible finance policies with their banks than by pursuing operational investmentsAs corporate treasury balances finding returns on their free cash, the...