Blog — 13 Jul, 2021
Driving Value Creation through ESG Integration Three Vital Steps for Every Bank
By Matthieu Bardout and Salman Khan
Highlights
ESG issues present important risks and opportunities for banks, and both need to be taken into account.
There are three steps every bank should consider as they begin their ESG journey
Many third-party providers are expending significant resources to upgrade their ESG offerings.
Environmental, social, and governance (ESG) issues continue to gain the attention of consumers, investors, and other stakeholders who are putting pressure on businesses throughout the economy to take steps to move to a low-carbon environment. As a result, gathering appropriate metrics and reporting on ESG strategies are fast becoming business imperatives. This is especially important for banks that need to consider ESG issues in their investing and lending portfolios.
This blog provides highlights of the webinar, Driving Value Creation through ESG Integration: Three Vital Steps for Every Bank (watch now), which covered the three stages every bank should take on its journey to becoming ESG compliant.
In order to achieve long-term value creation through ESG integration, there are three key steps that every bank needs to take.
STEP 1: Formalize a strategy and acquire the necessary capabilities to become ESG compliant
STEP 2: Integrate climate risk into the overall risk assessment and reporting framework
STEP 3: Assess the impact of the financial risks arising from climate change and incorporate those within the business strategy and reporting