Sustainable Finance

The global finance sector is under increasing pressure to operate more sustainably and be more transparent about its economic, social and environmental impacts.

A constant flow of new regulations around the world is bringing compliance challenges for the financial sector. At the same time, banks are expected to follow voluntary guidelines such as the Equator Principles, UN Principles for Responsible Banking and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

As a result, more and more banks recognize the need to integrate environmental, social and governance (ESG) factors into their investment, lending and project finance approaches and decisions. Many banks run significant asset management businesses and are exposed to a complex array of ESG risks and opportunities. ESG is also entering the lending and project finance space where banks have a critical role as the providers of loans to corporations, financing to projects and advice to issuers of securities.

KPMG's sustainable finance experts can help with both the challenges and opportunities. Our professionals offer tailored responsible banking services, customized to match differing needs and levels of maturity.

Awareness is also growing that sustainable finance & responsible banking approaches, with skillful management of ESG, can improve risk-adjusted returns, enhance reputation, spark commercial opportunities, mitigate portfolio risks, and improve market positions and value. Yet, many banks face multiple challenges in designing and implementing a successful approach to responsible banking and ESG. These range from a lack of internal resources to insufficient ESG data to verify performance.