Environmental, Social, Governance: ESG
Will ESG Reshape Banking Business Models?
It’s a trick question: ESG is changing business models across all industries, banking included.
Let’s look at one part of ‘E’ – sustainability.
In banking, sustainability spans several layers: How financial institutions manage their carbon footprint and emissions; the allocation of funds to organizations mindful of environmental impact and carbon emissions; the reporting on those lending and investment strategies; and the creation of demand-side products and services to meet the needs and expectations of both retail and corporate consumers.
The banking industry has taken leaps in its transformation. Green bonds, green financing, and the role of public and private finance in sustainability have become topics of discussion and innovation. The Sustainable Markets Initiative’s Financial Services Taskforce was created to assess the banking industry’s impact on global sustainability. The UN-convened Net-Zero Banking Alliance brought together international banks to align lending and investment portfolios with the goal of net-zero emissions by 2050, and the World Economic Forum launched its Green Horizon Summit.
Other industries recognize that financial mechanisms and organizations play a fundamental role in achieving sustainable goals and a net-zero economy.
ESG is an opportunity for banks but a vast, complex topic for bank executives to navigate.
To help, SAI360 is offering complimentary research from Gartner® to help bank CIOs understand how to address sustainable business, including growth opportunities, governance and regulation drivers, and operational capabilities.
Published this year, the report Sustainable Business and ESG Actions for Bank CIOs details emerging developments around growth, governance and regulation, and operational capabilities, with specific areas of impact and perspectives for CIO action.
If you’re a financial executive, bank CIO, or interested in how technology and business requirements are changing bank business models, download this Gartner® report, courtesy of SAI360. Available for a limited time.
Learn more about SAI360 for operationalizing your ESG goals. Or, contact us to see how SAI360 has helped organizations like yours.