SUSTAINABLE FINANCE & ESG

As a result of the EU's Green Deal, sustainable finance and ESG have increasingly become the focus of legislation for banks and financial services providers. Extensive new requirements are being imposed on the financial sector and need to be implemented quickly.

Two areas are currently receiving particular attention: on the one hand, there are new disclosure requirements that oblige banks and asset managers to inform their clients about the level of sustainability of their investments. The other is their own risk management, which now has to quantify and report on the risks of a climate change.

 

The necessary regulatory framework and laws have only recently been passed, and there are no off-the-shelf, standardised solutions for all market participants. Each bank and every asset manager uses different systems, their own valuation standards and different data providers. Action is needed. The legislation provides for rapid implementation and the timeframe is tight.