The critical role of Ethical Finance in promoting global welfare and environmental sustainability took center stage at the recently concluded Global Alliance for Banking on Values summit.
A report by the International Peace Bureau indicated that half the funds governments spent on armed forces and weapons last year “could have provided basic healthcare globally and significantly reduced greenhouse gas emissions.”
According to a Vatican News report, the summit addressed social, environmental justice, and artificial intelligence, spotlighting the disparity between mainstream and ethical banks’ practices.
Notably, defense spending has surged by nine percent due to conflicts in Ukraine and the Middle East.
Barbara Setti from Banca Etica said, “This highlights a direct correlation between arms investment and conflict.”
She further mentioned that global spending on arms represents “22 percent of the world’s GDP,” urging a shift towards Ethical Finance to foster peace and sustainability.
The summit called for financial systems to adopt Ethical Finance principles, focusing on “transparency, efficiency, and the broader impacts of economic actions.”
Setti expressed optimism for future shifts towards sustainable investments, advocating for divestment from the defense sector to promote peace. “We advocate for a divestment from the defense sector as a means to promote peace.”
Setti also stressed the importance of individual choices in supporting ethical financial practices, encouraging people to research banks’ investment policies to foster a more ethical economy.
“Every individual has a choice and responsibility in where and how they invest,” Setti said.
