Environmental, social and governance (ESG) associated opportunities and risks are becoming more and more relevant for financial institutions. Not only do ESG considerations make sense for the environment, but sustainable operations are also linked with better economic performance. Banks are therefore concerned not only with their own ESG footprint, but also the ESG risks and opportunities they are subject to as a lender. This is coupled with a constant flow of new regulations, which is bringing extensive compliance and horizon scanning challenges for banks.
How KPMG can help
Our teams support banks facing these ESG challenges. From assessment through to assurance, they are skilled at implementing complex, multidisciplinary programs of work. Specifically, we can help banks with:
- ESG maturity assessments and benchmarking/strategy.
- ESG governance and target operating model transition frameworks.
- Decarbonization strategies, climate risk stress testing and including scope 3 emission capture and reporting.
- Tooling and customization of ESG data collection and reporting.
- Risk management; integration of ESG risks, i.e. full consideration of the ESG risk drivers and impact relationships with known risk types (taxonomy/risk inventory/risk strategy), integration into the existing risk and model landscape, selection of risk assessment tools, involvement in reporting and forecasting processes— consideration of ESG factors in business and capital planning (via scenario or sensitivity analysis).
- ESG assurance services
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