Published: 31 January 2023
ESG efforts can impact banks in a variety of ways, but they lack the ability to effectively measure and demonstrate progress. Gartner predicts that banking CIOs who can quantify ESG outcomes will be able to prove to customers, regulators and themselves that they can affect change in a positive way.
Climate change is a big topic in the banking community, not just because sustainability is popular now, but because banks’ balance sheets have assets that have fiscal exposure from the effects of climate change.
Carbon asset and liability calculations must be integrated into the cost of capital. CIOs and CFOs must be close partners to ensure success with environmental efforts is delivered with operational expense transparency.
Banks will redefine their risk appetite, source so-called alternative and nontraditional data, and redesign lending platforms for underserved businesses, in many cases partnering with fintechs to access technology and expertise.
As sustainability efforts are still
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Analysts:
Jason Malo, Derek Frost, Paul Dennis, Moutusi Sau, Alistair Newton
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