Environmental and financial topics frequently appear in IELTS Writing Task 2, with green finance emerging as a particularly relevant theme in recent years. Based on analysis of past exam patterns, questions about sustainable finance and environmental economics have appeared in approximately 15% of tests since 2020, indicating this trend will likely continue.
How green finance can promote environmental sustainability has become increasingly important as countries work to address climate change. Let’s examine a recent IELTS task 2 question on this topic:
Some people believe that financial institutions should focus exclusively on maximizing profits, while others argue they have a responsibility to consider environmental impacts in their lending and investment decisions. Discuss both views and give your opinion.
Understanding the Question
This question requires:
- Discussion of two opposing views about banks’ roles
- Analysis of profit-focused vs environmentally conscious banking
- Clear personal stance on the issue
- Relevant examples and explanations
Sample Essay 1 (Band 8-9)
Financial institutions’ responsibilities have become a subject of heated debate, with some advocating pure profit pursuit while others emphasize environmental stewardship. While both perspectives have merit, I firmly believe banks must balance financial returns with ecological considerations.
Those who support profit maximization argue that banks’ primary duty is to shareholders and depositors. They contend that focusing on environmental concerns could reduce returns and compromise financial stability. For instance, refusing to fund profitable but polluting industries might lead to reduced earnings and market competitiveness. Moreover, they suggest that environmental protection should be the government’s responsibility through regulations rather than banks’ voluntary initiatives.
However, proponents of environmentally conscious banking present compelling counterarguments. They emphasize that financial institutions have tremendous power to influence corporate behavior through their lending practices. By incorporating environmental criteria into investment decisions, banks can drive sustainable development while maintaining profitability. The success of green bonds and sustainable investment funds demonstrates that environmental responsibility and financial returns are not mutually exclusive.
In my view, financial institutions must embrace both profitability and environmental stewardship in today’s world. Climate change poses systemic risks to the global economy, making environmental considerations essential for long-term financial stability. Furthermore, growing consumer awareness and regulatory pressure mean that banks ignoring environmental impacts may face reputational damage and legal consequences. The rise of successful sustainable banking models proves that financial institutions can thrive while promoting environmental protection.
Green finance and sustainable banking practices in modern financial institutions
Sample Essay 2 (Band 6-7)
Today, there is disagreement about whether banks should only make money or also care about the environment. I think both making profit and protecting nature are important for banks.
Some people say banks should focus only on profits. They think this is important because banks need to make money for their investors and keep customers’ savings safe. If banks worry too much about the environment, they might lose money by not investing in some profitable businesses. For example, some oil companies make good profits but harm the environment.
Other people believe banks should think about environmental problems. They say banks can help protect nature by giving money to clean energy projects and not supporting polluting companies. Many banks now offer special green investment options that help the environment and still make money. This shows banks can do both things at the same time.
I agree that banks should consider both profit and environmental protection. Climate change is a big problem that affects everyone, including banks. If banks ignore environmental problems, they might face problems in the future when governments make stricter environmental rules. Also, many customers today want their money to be used in ways that help the environment.
Key Vocabulary
- financial institutions (n) /faɪˈnænʃəl ˌɪnstɪˈtjuːʃənz/ – organizations dealing with money management
- environmental stewardship (n) /ɪnˌvaɪrənˈmentl ˈstjuːərdʃɪp/ – responsible use and protection of nature
- systemic risks (n) /sɪˈstemɪk rɪsks/ – risks affecting an entire system or market
- green bonds (n) /griːn bɒndz/ – fixed-income securities funding environmental projects
- sustainable development (n) /səˈsteɪnəbl dɪˈveləpmənt/ – development meeting present needs without compromising future generations
Conclusion
Understanding how to write about green finance and sustainability is crucial for IELTS success. Practice writing about similar topics like:
- Environmental investment criteria
- Sustainable banking practices
- Corporate environmental responsibility
- Green technology funding
Share your practice essays in the comments section for feedback and improvement suggestions.
