Financial market participants are increasingly pressurized by stakeholders to place further emphasis on ESG factors within their sectors. Developments such as regulatory pressure, disruption in the financial markets as well as customer preference are compelling many financial services organizations to integrate ESG into the way they conduct business.
KPMG professionals can offer environmental, social and governance (ESG) services across:
- ESG in asset management: Growth in sustainable investment is accelerating. This brings a suite of challenges for asset managers, as ESG considerations should be factored into investment strategy, reporting, assurance, risk and due diligence and tax. We can offer services across the ESG journey. A progressive position in the market means that KPMG professionals can offer a 360- degree perspective on ESG across sectors, providing critical insight for investors.
- ESG in insurance: Insurers are key players in the transition to a greener economy. KPMG professionals have decades of local and global experience with insurers worldwide and understand the broader ESG ecosystem. We can offer ESG solutions across product development, underwriting, reinsurance, asset management, distribution, claims management, climate modelling, data and technology, risk management and people and culture.
- ESG in banking: As banks and their customers consider future allocations of capital, ESG issues are likely to be increasingly at the forefront of their considerations. We are working with regional and global banks to build ESG rules and structures that support their public net zero commitments, help fulfil regulatory expectations and assist in achieving a just transition for their stakeholders.
- ESG in private finance: Private finance while generally having the lowest regulatory drivers, have been the fastest to embrace ESG as a critical lever of value creation. KPMG professionals are standing beside private finance clients to help them create and handle new ESG impact funds and to help transform existing funds to meet the increasing investor demand.
- ESG in public finance: We are working with governments, regulators, central banks, international organizations and development banks to build ESG rules and structures which can assist in the offering of public finance to ‘green’ projects including the incorporation of private finance alongside the public.