Whether it’s business finance, the challenges of working remotely, or a growing emphasis on climate change, now is the time to put plans in place to build back better after the pandemic. As the world starts to look towards the future, sustainability is the new mantra.
The growing global urgency around climate change, and the hard lessons learned in 2020 about the need for systemic societal change, have served to reinforce the view that a long-term, sustainable financial services approach centred around strong environmental, social, and governance (ESG) principles is more important than ever.
Regulators, policymakers, investors and stakeholders are becoming increasingly vocal about the greater need for ESG to be integrated into financial services’ due diligence and compliance processes.
Customers are likewise putting on the pressure, particularly as we see more millennial and Gen Z business leaders, expecting their banking partners to reflect their views and beliefs and increasingly selecting their financial service providers based on ESG credentials.
52% of banks view environmental and climate change as the key emerging risk over the next five years, up from 37% one year ago.
According to Gov.uk 74% of UK millennial investors want to invest in companies with a positive impact on society and the environment
There is a huge opportunity for financial services providers to differentiate themselves by taking the lead as sustainability leaders, but to do so they must take a tech-driven approach.
Putting ESG thinking at the heart of financial services
Whether reviewing supplier partnerships, prospecting for greener companies or approving sustainable loans, all organisations are using data more intensively to gain deeper insights before making key business decisions.
Most financial service providers still don’t have a centralised ability to collect and analyse ESG data.
This is down to three factors:
- ESG data takes many forms and can be found in many places – internal, external, structured and unstructured
- ESG data changes quickly and constantly – it’s hard to keep up, let alone analyse and react
- ESG data is big data – analysing such data from news, social, IoT, and building a picture across the entire financial services chain, from suppliers to customers, is a huge undertaking
Data and AI must therefore play a central role – from collection and triage of ESG data for due diligence and compliance, surfacing insights to sales and relationship management for prospecting, engagement and onboarding, KYC, KYS, to ESG-informed C-suite decision making – if financial services organisations are to move in the sustainable direction future success demands.
Join Artesian and Triodos Bank and EY for a forum discussion on sustainability and due diligence from the front-line
On June 3rd, Artesian, in partnership with Triodos Bank and EY, will hold a virtual forum to discuss how industry experts can create investment and build businesses that not only generate wealth but also produce positive impacts on society and the planet.
We invite you to join us and have your say about:
- Exploring opportunities in green finance such as sustainable prospecting and ethical lending
- How to screen and avoid companies not meeting socially responsible criteria
- The commercial opportunities and challenges of building a ‘sustainable-first’ business
- How due diligence practices are evolving for financial institutions and corporates