We’ve found that, as banks expand their sustainability-related disclosures, it is becoming increasingly important to deliver a connected and focused narrative. With many disclosure frameworks applied, comparing and understanding ESG performance can be a challenge.
Other key findings from our analysis include the following.
- Although all banks disclose sustainability-related considerations in their credit risk assessment process, the quantified impact of climate risk on ECL remains relatively limited.
- Disclosures of portfolio coverage for financed emissions are gaining traction, and risks and dependency disclosures are expanding as interim target dates draw nearer.
- Despite ample narrative on financial inclusion and customer protection, a lack of standardised metrics and targets makes it difficult to assess their effectiveness.
- Banks have begun disclosing their risk management approaches to artificial intelligence (AI) ethics and algorithmic bias.
Read our analysis for further insights.
