They are, after all, often at the heart of the transformation towards a more sustainable economy. This has never been more important as research suggests that we may be reaching a climate tipping point, emphasizing the urgency for individuals and institutions to act now.
First, however, financial institutions must look to their own performance. And measure it. Increasingly, an organization’s ESG performance — its Environmental and Social impact, as well as its Governance practices — is part of wider annual reporting metrics alongside more traditional financial performance.
We are already seeing a large number of best practices, standards and regulations emerging that will help financial institutions structure their response. In our new report ESG Performance, we look at how financial institutions can fully integrate ESG performance considerations into their processes.
This will be a significant transformation with deep-rooted ramifications for financial institutions as they transition to a new role in the financing of sustainable economies.