Whitepaper
The ESG challenge in banking is real — and massive

However, intertwined with the focus on sustainability is the ever-present spectre of risk. Climate change and social factors, for example, are monumental and often unpredictable forces that represent serious liabilities for firms, in terms of their potential impact both on assets and on reputation.

As a result, the ESG journey is a multi-faceted and mammoth task for financial institutions. The first major hurdle is identifying both where and how to start — a challenge this whitepaper exists to address.

It unpacks the three elements essential to building solid ESG foundations in the financial sector:

1. An ESG data platform 
   Fit for the multidimensional scale of ESG transformation, and extending beyond each institution’s internal data: Downstream to financed activities and upstream to products and services acquired through the supply chain.
   
   
2. Green IT 
   A double-edged sword, given the finance sector’s high, energy-intensive use of IT systems and digitization’s simultaneously vital role in data-driven ESG transformation.
   
   
3. An integrated delivery plan 
   Balancing top-down and bottom-up action for institution-wide understanding, buy-in, momentum, and adaptation. Clarifying priorities and areas for maximum impact, from top-level strategy through to daily interactions across customers, products, and suppliers.