The Climate Safe Learning Lab (CSLL) (an initiative of the Climate Safe Lending Network) convened 50 bankers of varying seniority and roles to explore the barriers and enablers to climate action within banks in a confidential pre-competitive environment.  CSLL identified 5 priorities that banks must address to finance the transition to a zero-carbon economy:

• taking responsibility for climate risk;
• being accountable for both positive and negative climate impact;
• stopping the flow of fossil fuels;
• decarbonising economies and balance sheets; and
• financing innovation for a sustainable future.

This forum focussed on the underlying systemic dynamics within banks that inhibit and accelerate progress toward these priorities.  To illustrate this, CSLL provided participants with a change framework using the visual image of a tree where:

• mental models = roots
• relationships = trunk
• structures = branches
• strategies = leaves

Intrapraneurs (defined as “a finance professional seeking to embed climate action within the core strategy, operations and culture of their institution”) are facing common challenges with common ‘proven tactic’ solutions:

• Climate intrapraneurs feel cognitive dissonance between their own profound desire to create change in contrast to their organisation’s culture.
  Proven tactic: find a tribe for mutual support both internally and externally.
• Credibility in banks often depends on seniority making it difficult for intrapraneurs without a mandate to speak up.
  Proven tactic: practice speaking up with supportive senior colleagues as a first step.
• Intrapreneurs are trying to shift the idea of the bank following client demand for climate action to banks taking a leadership role in the transition.
  Proven tactic: emphasising the cost of inaction instead of the cost of implementing climate strategies.
• Much about the implementation and outcomes of climate finance strategies is ambiguous and unknown.  In an industry which values rigorous analysis and having all the answers, this is countercultural and uncomfortable.
  Proven tactic: leveraging COVID-19 journey that has challenged long held assumptions in banking.
• Reframing narratives including climate as a tick box exercise, short term mindsets and taking a siloed view.
  Proven tactic: finding shared values and goals.
• Many issues and stakeholders all compete with climate action for attention.  There is decision fatigue and information overload of decision makers in banks.
  Proven tactic: align objectives; create climate heros; tend to unmet needs.
• Intrapraneurs fear being perceived as alarmist and losing their seat at the table even though they feel like they are sitting on a burning platform.
  Proven tactic: link into strategic priorities; choose your timing; choose your battles.
• Many intrapraneurs not working in sustainability teams are working on climate as a ‘side of desk’ job.  For bank climate goals to be achieved all staff must have a climate mandate backed by internal resource allocation.
  Proven tactic: find ways to advocate for sustainability to be built into current job description.
• Frequent turnover of key positions in the bank introduces an element of instability.
  Proven tactic: build multiple relationships in key teams to hedge risk of losing a critical ally.

1. As a result of the CSLL convention participants reported that they felt more connected to likeminded peers; more committed to collaborating with others; and more inspired and motivated to create change. This indicates that creating safe spaces for finance professionals who also identify as climate intrapreneurs to talk confidentially about the goals and challenges may invigorate these individuals and increase the pace of climate action within banks.
2. Increasing numbers of banking professionals are working to find ways to integrate a climate focus into their existing job descriptions. The Climate Safe Lending Network labels these individuals as "Climate Intrapreneurs" and categorises them as either Pioneers (developers and implementers of climate related initiatives), Guides (supporters of Pioneers, usually HR) or Patrons (P&L owners and senior leaders who provide resources and mandates for climate related initiatives). Managing directors in banks typically do not see themselves as senior enough to be Patrons due to the size and complexity of banks.
3. A key challenge faced by climate intrapreneurs is how their colleagues think about the role of banks in addressing the climate crisis. They are working to reframe the role of banks, and build consensus that banks must be leading this agenda rather than being driven by client demand. This will require some difficult decisions, sometimes resulting in forgoing short-term gains for longer term advantage.
   
   
4. In a risk-averse industry trained to rely on data and analysis, climate intrapreneurs are urging their colleagues to become comfortable with experimentation and uncertainty given the data and standardised methodologies will not be fully available until it is too late to act. Climate intrapreneurs are working to influence this cultural shift towards a normative basis for making decisions, within ethical and regulatory constraints.
   
   
5. Climate intrapreneurs are reframing narratives, and combatting simplistic views of climate finance internally where it is seen as a check-box, a CSR activity or a standalone environmental issue. They are positioning the climate emergency as inherently connected to other environmental issues such as deforestation and biodiversity loss. They are also framing climate change as a social issue requiring just transition principles to be embedded into climate strategies. Climate intrapreneurs encourage acceptance of these narratives through identifying shared values with colleagues, and bringing in external examples and expertise.
6. In order to see climate action embedded in the heart of business as usual, climate intrapreneurs must navigate a sea of competing agendas either by increasing the relative importance of climate strategies or finding ways to achieve climate goals through linking in with other priorities such as the Covid-19 economic recovery.
7. Climate intrapreneurs walk a tightrope between being pushing too hard and thereby losing their seat at the table and treading too softly to motivate change at the necessary pace and scale. It is important to note that often the root cause of resistance to new agendas is fear of the unknown and perceived loss of power and competence. Climate intrapreneurs must cultivate the psychological safety for colleagues to be willing to embed a climate lens into their work.
8. Climate strategies are no longer the remit of sustainability teams alone. Every bank employee must be given the mandate to help achieve the bank’s climate goals through their work. Rather than seeking roles in the sustainability function, climate intrapreneurs are advocating for investment in climate capability right across their banks.
9. Having sustainability leaders report directly into the CEO and Board has helped some banks to break down the false dichotomy between ‘profit and purpose’. This way sustainability is integrated into corporate strategy, rather than a siloed CSR agenda on the side. Frequent turnover of roles within banks requires climate intrapreneurs to invest in multiple relationships to hedge against delays and setbacks when a key contact moves on, whether by promotion, redundancy or resignation.
10. Climate intrapreneurs experience unsettling levels of cognitive dissonance where they are required to leave their personal values and concern about the climate emergency at home in order to put their ‘business hat’ on at work. However, it is this same discomfort that drives climate intrapreneurs to take action. Building a network of aligned allies with a shared vision is a key tactic for sustaining this work.