Sustainability poses risks and opportunities, sustainability problems at companies lead to higher risk. There is empirical evidence that banks charge higher interest rates on loans to companies that experience sustainability problems. That's a risk premium for sustainability. At the same time, banks give a discount to companies with a good performance. That's all static at the time of making the loan. You can also make the game more dynamic. Banks are now incorporating incentives to companies to improve sustainability. Let me give you an example, Philips is a leading company in healthcare solutions. It has a loan facility from ING bank whereby the interest rate decreases when the sustainability performance of Philips improves. It is of course important to use an external sustainability measure. In this case the rating of Sustainalytics make your sustainability rating provider is used. There are more examples where companies get a discount on the interest rate if and when their sustainability and performance improves over time, these are win-win deals. The bank face lower risk when sustainability improves and companies get lower interest cost when their sustainability improves. Another example is the Terra approach adopted by leading European banks. Banks focus on the sectors in the loan book that are responsible for most green house gas emissions such as energy, automative, shipping, and aviation, steel, cement, residential mortgages, and commercial real estate. They use a specific approach for each sector in order to make the most impact partnering with leading external climate measurement experts. Detailed technology roadmaps for each sector are being developed by independent organizations like the international energy agencies. These technology scenarios are aligned with a 2 degree celsius target and they are forward looking. When the bank gets a request for a loan, it checks whether technology used by the prospective client is in line or even better ahead of the technology roadmap for that sector only then the bank will give a loan. Companies which fall behind the curve face difficulties in financing themselves. Again, an example of an approach where a transition can be accelerated by financing the proactive companies and withdrawing finance from the locket. Also at the aggregate level the banking sector can make commitments. All Dutch financial institutions have, for example, themselves committed to reduce carbon emissions in their portfolio by 49% measured from 1990 to 2030. There are also more ambitious banks, ASN bank for example wants to be climate neutral in its loan and investment portfolio. Clients generate as much renewable energy as they cause carbon emissions. The aim is to be carbon neutral or even generate carbon profit. And remember it is not only about carbon, ASN bank for example also targets to reduce biodiversity loss and to ensure a living wage across the value chain. An important sector is the common sector, where clothes are produced in low-income countries. And living wage is very powerful to improve the SDG of no poverty. With a living wage somebody can support its family. So the family can buy food and have access to education and healthcare. These examples show that banks can use their allocational role to accelerate the transition to sustainable development. It's not only important to finance sustainable companies, but also to help the unsustainable companies to become sustainable or if that fails to stop financing them. Thank you for listening. [MUSIC]