The topic of green finance and its impact on the banking sector has gained significant traction in recent IELTS Writing Task 2 exams. Based on an analysis of past exam trends and the growing importance of sustainable finance, this theme is likely to appear more frequently in future tests. Let’s explore a relevant question that has appeared in recent IELTS exams:
Some people believe that banks should focus solely on maximizing profits, while others argue that they have a responsibility to promote sustainable and environmentally friendly practices. Discuss both views and give your own opinion.
Analyzing the Question
This question requires candidates to:
- Discuss the view that banks should prioritize profit maximization
- Explore the perspective that banks have a responsibility towards sustainability
- Provide a personal opinion on the matter
Now, let’s examine sample essays for different band scores, focusing on the impact of green finance on the banking sector.
Band 8-9 Sample Essay
In today’s world, the role of banks in society has become a topic of heated debate. While some argue that financial institutions should concentrate exclusively on profit generation, others contend that they have a broader responsibility to promote sustainable and eco-friendly practices. In my opinion, while profitability is crucial for banks’ survival, they must also embrace their role in fostering environmental sustainability.
Those who advocate for banks to focus solely on profit maximization argue that this approach ensures financial stability and economic growth. They believe that by prioritizing profits, banks can offer better services to customers, invest in technological advancements, and contribute to overall economic development. Moreover, proponents of this view argue that environmental concerns should be addressed by dedicated organizations and government agencies, not financial institutions.
On the other hand, supporters of banks adopting sustainable practices argue that financial institutions have a unique position to influence environmental change. By offering green financial products, such as low-interest loans for renewable energy projects or incentives for eco-friendly businesses, banks can significantly impact the transition to a sustainable economy. Furthermore, they contend that how can ethical banking practices be promoted without the active participation of major financial players in sustainability efforts.
In my view, banks must strike a balance between profitability and environmental responsibility. While it is undeniable that financial stability is essential for banks to function effectively, ignoring the pressing environmental challenges of our time would be short-sighted. By integrating green finance into their business models, banks can not only contribute to a sustainable future but also tap into new market opportunities and enhance their reputation among increasingly eco-conscious consumers.
In conclusion, while profit generation remains a core objective for banks, they must also embrace their role in promoting sustainable practices. By doing so, they can ensure long-term success while contributing positively to the environment and society at large.
Band 6-7 Sample Essay
The role of banks in society is a topic that many people have different opinions about. Some think banks should only try to make as much money as possible, while others believe they should also help the environment. I will discuss both sides and give my own thoughts on this issue.
People who say banks should focus on profits think this is important for the economy. They believe that if banks make more money, they can give better services to customers and help businesses grow. This can create jobs and make the country richer. Also, they might say that it’s not the job of banks to worry about the environment, and that other organizations should do that instead.
On the other hand, those who want banks to be more environmentally friendly believe that banks have a big influence on society. They think banks can help by giving cheap loans to green businesses or supporting projects that are good for the environment. This could help reduce pollution and fight climate change. Some people also say that banks should should banks offer financial education to their customers about how to invest in eco-friendly ways.
In my opinion, I think banks should try to do both – make money and help the environment. It’s important for banks to be financially stable, but they should also care about the planet. By supporting green projects, banks can actually find new ways to make money while also doing good for the environment. This could make more people want to use their services.
To conclude, while banks need to make profits, they should also think about their impact on the environment. By balancing these two goals, banks can be successful and help create a better future for everyone.
Band 5-6 Sample Essay
Banks are important in our society. Some people think banks should only make money. Other people think banks should help the environment too. I will talk about both ideas and give my opinion.
People who want banks to make money say it is good for everyone. If banks have more money, they can help people and businesses more. This can make the country rich. They think other groups should take care of the environment, not banks.
People who want banks to help the environment say banks can do a lot of good things. Banks can give money to green businesses. They can help stop pollution. Some people think banks should teach people about green money.
I think banks should try to do both. Making money is important, but helping the environment is also important. If banks do both, they can be successful and make the world better.
In the end, I believe banks should make money and help the environment. This is the best way for banks to be good for everyone.
Sustainable Banking Practices
Explanation of Band Scores
Band 8-9 Essay:
- Fully addresses all parts of the task with a well-developed response
- Presents a clear position throughout the essay
- Uses a wide range of vocabulary with very natural and sophisticated control of lexical features
- Uses a wide range of structures with full flexibility and accuracy
- Coherent with skillful use of cohesive devices
- Demonstrates awareness of style and tone
Band 6-7 Essay:
- Addresses all parts of the task, though some parts may be more fully covered than others
- Presents a relevant position, though conclusions may become unclear or repetitive
- Uses an adequate range of vocabulary for the task with some evidence of style and collocation
- Uses a mix of simple and complex sentence forms
- Arranges information coherently and there is clear overall progression
- Uses cohesive devices effectively, but cohesion within and/or between sentences may be faulty or mechanical
Band 5-6 Essay:
- Addresses the task only partially; format may be inappropriate in places
- Expresses a position but development is not always clear
- Uses limited range of vocabulary; errors in word choice and spelling may cause difficulty for the reader
- Uses only a limited range of structures with only rare use of subordinate clauses
- Presents information with some organization but there may be lack of overall progression
- Makes inadequate, inaccurate or over-use of cohesive devices
Key Vocabulary to Remember
- Sustainable practices (noun phrase) – /səˈsteɪnəbl ˈpræktɪsɪz/ – Actions that avoid depleting natural resources
- Green finance (noun phrase) – /griːn faɪˈnæns/ – Financial activities that support environmentally friendly projects
- Eco-friendly (adjective) – /ˈiːkəʊ ˈfrendli/ – Not harmful to the environment
- Profitability (noun) – /ˌprɒfɪtəˈbɪləti/ – The ability or capacity to yield profit
- Environmental responsibility (noun phrase) – /ɪnˌvaɪrənˈmentl rɪˌspɒnsəˈbɪləti/ – The duty to take care of the environment
- Renewable energy (noun phrase) – /rɪˈnjuːəbl ˈenədʒi/ – Energy from a source that is not depleted when used
- Economic development (noun phrase) – /ˌiːkəˈnɒmɪk dɪˈveləpmənt/ – The process of improving economic well-being
- Financial stability (noun phrase) – /faɪˈnænʃl stəˈbɪləti/ – The condition of a financial system able to withstand shocks
- Incentives (noun) – /ɪnˈsentɪvz/ – Something that motivates or encourages someone to do something
- Climate change (noun phrase) – /ˈklaɪmət tʃeɪndʒ/ – Long-term changes in temperature and weather patterns
Conclusion
The impact of green finance on the banking sector is a highly relevant topic for IELTS Writing Task 2. As demonstrated in the sample essays, this theme allows candidates to showcase their understanding of economic and environmental issues while demonstrating their writing skills. To prepare for similar questions, practice writing essays on related topics such as:
- The role of financial institutions in promoting sustainable development
- Balancing economic growth with environmental protection in the banking sector
- The challenges and opportunities of implementing green finance practices
Remember to structure your essay clearly, use a range of vocabulary and complex sentence structures, and provide specific examples to support your arguments. We encourage you to practice writing your own essay on this topic and share it in the comments section below for feedback and discussion.