Sustainability is essential in the future
Sustainability has become an indispensable part of the banking industry. Legislators and regulators are implementing numerous initiatives that pose new challenges for financial institutions. At the same time, customers are increasingly concerned that their financial decisions are sustainable, environmentally friendly and climate-friendly.
To ensure long-term success and overcome regulatory hurdles, institutions must align their business activities with sustainability goals early on and initiate a transformation process.
Here you will find answers on how to optimally implement a sustainable future in the financial industry.
Sustainable Banking Study 2024
The banks' role in the transformation of society towards greater sustainability
The banking industry is facing a profound change: sustainability is no longer just a trend, but a legal mandate. New regulations, such as the EU taxonomy and the CSRD, are forcing banks to integrate environmental and social risks into their business models.
- Rapid adaptation: Many banks have already initiated measures to implement the new requirements, but there is still a lot of catching up to do, particularly in terms of data collection and the integration of ESG factors into lending.
- Challenges: Staff shortages, lack of expertise and technical difficulties hinder implementation.
- Opportunities: Sustainability offers new business opportunities, such as the expansion of sustainable financial products.
The banking sector is undergoing a transformation process. In order to meet the new requirements, banks need to adapt their business models, invest in new technologies and train their employees.
Overview of the results
The key findings of the study show:
- how banks assess the upcoming regulatory measures, including with regard to the S-factors,
- how far they have come in integrating ESG risks into risk management, how well they have mastered scenario modeling in the coma stress test and to what extent they fully consider climate and environmental risks in their economic and normative risk-bearing capacity,
- the problems that arise in the technically challenging implementation of the disclosure obligations under the CSRD and the ESRS in connection with the search for suitable software solutions,
- what impact the ESG factors have on the bank's own business model,
- what key obstacles, particularly in terms of staffing and the availability of IT solutions, exist on the path to greater sustainability.
Contents of the study
- Foreword
- Management Summary
- Current developments
- Government initiatives and upcoming regulatory measures
- Product design: securities issues and the lending process
- Risk management
- Impact of sustainability on banks' business strategy and business models
- Implementation in practice
- Sustainability reporting, ECB expectations, data requirements
- Obstacles to implementation
- Specific characteristics of the Austrian banking market
- Conclusion
We are happy to support you
For institutions, sustainability touches many areas such as business and risk strategy, risk management, internal governance, sales strategy and disclosure of information outside the annual report.
Our team can provide technical support and IT solutions in all these areas to ensure that your organisation meets the requirements related to sustainability.
Credit processes
Credit processes
- Dealing with sustainability risks at the borrower
- Design of a sustainability assessment
- Training offers
- Carrying out planning calculations and scenarios
- Development of assessment software
- Connection to databases of our technical partners
Reporting & Disclosure
Reporting & Disclosure
- Preparation of sustainability reports
- Optimisation of processes for the creation of ESG reports
- Generator for the preparation and automation of CSR reports
- Ensure seamless reporting to regulators
- Gap analysis of your database to meet regulatory requirements
- Overview of relevant EU regulations and necessary external data sources
- Training services
- Merging your data with external data sources
- Calculation tool for data delivery to supervisors
Collateral assessment
Collateral assessment
- Sustainable valuation of real estate through life cycle assessment as a quick valuation, detailed valuation or on real estate portfolios
- Transformation of ecological variables into economic values (present values/final values)
- Planning calculations, scenarios and risk assessments
- Reporting and documentation
- Training offers
- Implementation of planning calculations and scenarios
- Development of a valuation module
- Connection to databases of our technical partners
Outsourcing management
Outsourcing management
- Alignment of the outsourcing policy
- Alignment of outsourcing contracts
- Modification of the monitoring /KPI to ESG criteria
Risk management
Risk management
- Integration of transitory and physical risks into the existing risk map
- Scenario analyses, transition scenarios and impact scenarios
- Design of sustainability or climate stress tests
- Training offers
- Implementation of planning calculations and scenarios
- Joint definition and development of an ESG assessment and management tool
- Automation in the digitalisation or analogue data sources/documents
- Integration into existing applications
- Application of THINC to derive and measure ESG risks
Compliance & internal audit
Compliance & internal audit
- Training of the compliance function and internal audit with regard to ESG requirements.
- Regular training of a bank's employees
- Monitoring