Esg Conscious Banking: An Opportunity to Do Good and Do Well
For centuries, Banks have catalyzed social change and evolution. Today, as the world grapples with climate change, inclusion, social justice and institutional accountability, banks once again have the opportunity to power the next revolution – the ESG revolution. While most banks have a formal ESG strategy, we believe that ESG consciousness is not just about doing good, but also about doing well. ESG-conscious banking should create new and future-proof value streams to build a sustainable and resilient business.
7 Compelling Reasons Why Banks Should Focus on Esg
- An emerging opportunity: Sustainable finance and ESG-conscious lending are now mainstream business segments, offering advantages to early movers.
- Regulation is imminent: Banks start building a strong ESG-conscious loan book and embracing high standards of ESG reporting immediately, will stand to gain an early mover advantage.
- Mitigate portfolio risk: With a strong ESG-centric lending policy in place, banks can capitalize on emerging global opportunities to mitigate their lending portfolio risk.
- New revenue streams: Banks can create new revenue streams through ESG-focused products and services, benefiting clients in addressing ESG shortfalls.
- Access ‘green’ capital: Banks with a proven ESG lending track record gain preferential access to ‘green’ capital, boosting investor confidence in the future.
- Growth and valuation: ESG-consciousness leads to better decision-making, risk mitigation, and long-term sustainability, driving growth and valuation.
- Positive impact on reputation: ESG’s positive impact on corporate reputation directly influences business valuation, crucial for sectors like banking reliant on trust and goodwill.
4 Areas Where Banks Can Drive Esg Consciousness, Profitably:
How Finacle Solutions Help Create Esg Impact Profitably:
With Finacle Solutions You Can Recompose Your Bank’s Business Model to Create Value and Drive Sustainability
Finacle’s Esg Impact in the World:
Touching a Billion Lives Every Day
