The transition to a decarbonised and more sustainable economy requires extensive investment. The financial market has a central role to play in mobilising and managing capital flows. In addition, there is a growing consensus that sustainability factors influence corporate performance and transactions in the financial market.
Resulting market changes as well as the package of measures included in the EU action plan "Financing Sustainable Growth" lead to broad-based changes with effects on both the financial and the real economy.
From end-customer advice to insurance and lending to asset management, the consideration of ESG (environmental, social and governance) criteria is becoming relevant everywhere. Sustainable finance encompasses all areas of the financial sector and has a direct impact on the real economy. Asset managers, banks and insurance companies are faced with the challenge of identifying material ESG factors that influence business performance, creditworthiness or loss risk and integrating them into business processes.
For example, in order to meet the demands of investment owners, various investment strategies have been developed, such as the use of exclusion criteria, best-in-class approaches to sustainability management systems and impact investing. Through the exercise of voting rights and forms of dialogue, investors are increasingly seeking direct exchange on sustainability issues with companies. Innovative instruments, such as green bonds, open up new financing opportunities.
By incorporating ESG factors into traditional financial analyses, financial market actors gain well-founded risk profiles. We help you design processes that identify material factors. To meet the growing demand for more sustainable and transparent alternatives and to tap new business potential, we provide you with the necessary market analysis and support you in product development with our interdisciplinary team of experts. For the overall picture, we work with you to develop an ESG strategy that meets your individual needs and organisational structure. In doing so, we ensure that you remain credible. We show which processes and structures are necessary for your reporting to meet the requirements of regulatory and voluntary frameworks, such as the UN Principles for Responsible Investment (UN PRI).
The pressure on companies in the real economy is also increasing. They must create transparency regarding their own sustainability management and product portfolio. In order to benefit from lower costs for loans or insurance and to increase attractiveness for investors, we advise you on classic sustainability management systems as well as on the strategic orientation of your product and service portfolio. For concrete goals, such as reporting in accordance with the TCFD recommendations or an improvement in sustainability ratings, we put together a targeted package of measures for you. In this way, you are optimally positioned on the capital market, benefit from lower capital costs and avoid exclusion from ESG investment universes.
Partner, Risk & Compliance Services
KPMG AG Wirtschaftsprüfungsgesellschaft
Sustainability and corporate social responsibility (CSR) disclosures are becoming increasingly important to investors, customers and other stakeholder
Sustainability & Corporate Social Responsibility (CSR) Disclosures Increasingly Important