Recent IELTS examination trends show increasing emphasis on topics related to sustainable finance and banking’s role in environmental protection. This theme has appeared multiple times in the past two years, particularly in questions about economic development and environmental responsibility. Let’s explore some recent exam questions and provide sample essays at different band scores.
how green banking initiatives support sustainability has become increasingly relevant as financial institutions play a crucial role in promoting sustainable development.
Analyzing the Task 2 Question
Some people believe that banks should focus solely on making profits, while others argue that banks have a responsibility to promote sustainable development and environmental protection. Discuss both views and give your opinion.
This question requires discussing two contrasting perspectives about banking’s role in society while presenting your own viewpoint.
Sustainable banking practices and environmental protection initiatives
Band 8 Sample Essay
Many debate whether banks should prioritize profits or embrace broader environmental responsibilities. While both perspectives have merit, I firmly believe banks must balance profitability with sustainable development objectives.
Those advocating profit-focused banking argue that financial institutions’ primary responsibility is to shareholders and depositors. They contend that banks function best when concentrating on core financial services and maximizing returns. For example, traditional banking activities like lending and investment generate the capital needed for economic growth and job creation.
However, proponents of sustainable banking emphasize that impact of green finance on banking sector extends beyond mere profits. Banks can significantly influence environmental outcomes through their lending policies and investment choices. By funding renewable energy projects and denying loans to polluting industries, banks help drive sustainable development. The success of green bonds and sustainable investment products demonstrates that environmental responsibility can be profitable.
The importance of financial inclusion for economic development shows how banks can combine social responsibility with business success. Modern banks must recognize that long-term profitability depends on environmental sustainability. Climate change poses significant risks to financial stability, making environmental considerations crucial for risk management.
In conclusion, while profitability remains important, banks must embrace their role in promoting sustainable development. The future of banking lies in finding innovative ways to generate returns while protecting our planet.
Band 7 Sample Essay
The role of banks in society has become a topic of intense debate. While some believe banks should focus on profits, others argue they have environmental responsibilities. I think both aspects are important but environmental protection should be prioritized.
Supporters of profit-focused banking claim that banks need to concentrate on financial performance to remain stable. They say that additional responsibilities might distract banks from their main purpose of providing financial services. For instance, many traditional banks have succeeded by focusing solely on banking operations.
However, those favoring environmental responsibility argue that how international banking affects global finance includes environmental impacts. Banks can promote sustainable development through careful lending practices. Many banks now offer special loans for solar panels and other green technologies.
importance of ethical practices in banking suggests that financial institutions should consider their broader social impact. Environmental protection is becoming necessary for long-term business success. Banks that ignore environmental concerns might face future risks.
In my opinion, while profits are important, banks must help protect the environment. They can do this while still making money through green investment products.
Key Vocabulary
- Sustainable development (n) /səˈsteɪnəbl dɪˈveləpmənt/ – development meeting present needs without compromising future generations
- Environmental protection (n) /ɪnˌvaɪrənˈmentl prəˈtekʃn/ – measures taken to protect the natural environment
- Green finance (n) /griːn faɪˈnæns/ – financial activities that support environmental initiatives
- Financial stability (n) /faɪˈnænʃl stəˈbɪləti/ – condition where financial system functions smoothly
- Investment portfolio (n) /ɪnˈvestmənt pɔːrtˈfəʊliəʊ/ – collection of financial investments
- Corporate responsibility (n) /ˈkɔːrpərət rɪˌspɒnsəˈbɪləti/ – ethical obligation of businesses to society
- Stakeholder (n) /ˈsteɪkhoʊldər/ – person or group affected by an organization’s actions
For practice, try writing your own essay addressing this topic and share it in the comments. Future exam questions might explore related themes like digital banking’s role in sustainability or the balance between economic growth and environmental protection.
