For banks, integrating environmental, social and governance (ESG) risks and opportunities is not just an ethical, but also economic and existential matter. As ESG is not a stand-alone risk type, embedding it into the risk management framework requires a holistic approach and brings major challenges.
How can we support you?
KPMG can assist banks to successfully master those challenges through the following services and tools:
- ESG maturity assessment
- Evaluating where the bank is on its ESG journey, as a vital step in developing a successful ESG strategy
- Materiality assessment
- A systematic identification of relevant risk drivers
- Applying risk assessment methods to understand the materiality of exposures
- Rethinking bank’s business strategy
- Adapting the business strategy through transition planning and scenario choices for target setting
- Developing strategic steering tools (assessing the maturity of client transition plans)
- Adapting the business strategy through transition planning and scenario choices for target setting
- Green loan assessment tool
- A tool for evaluating whether loans fulfill eligibility criteria defined by EU and CBI taxonomies
- Risk appetite calibration
- Establishing Key Risk Indicators (KRIs) to monitor whether the institution’s exposures are aligned with the determined transition trajectory.
