The integration of sustainability into management systems and practices can bring tangible benefits, including new lines of business, new clients, greater access to financing, greater shareholder value, and improved reputation and goodwill.
With the increasingly real impact of environmental and social pressures (including climate change) on economies, it is acknowledged globally that integrating E&S factors into financial institution’s strategies and transaction processes is essential for strengthening the resilience of the financial system. Policy work conducted by the G20 Sustainable Finance Study Group and reporting guidelines developed by the Financial Stability Board’s (FSB) Task force on Climate-related Financial Disclosures (TCFD) for example, attest to this.
Demand for Sustainability from Banks:
One of the key challenges financial institutions face is the need to expose their strategy, credit and regulatory affairs teams to new areas of knowledge, to increase their capabilities and enable decision making. The ESRM Program supports financial professionals and consultants to overcome these challenges.
The IFC’s FIRST for Sustainability Portal provides a comprehensive discussion of the business case for E&S risk management for Financial Institutions.