THE ROLE OF REGULATION AND DATA IN SHAPING TOMORROW'S GREEN ECONOMY
Mounting pressure from governments, regulators, industry, investors and customers has driven ESG to the very top of today’s business agenda. Moving forward, alignment and compliance with emerging ESG standards will be a critical differentiator for long-term business success across financial, energy and manufacturing markets globally. Approaches to implement ESG frameworks and best practices are not harmonized across individual markets and regions, however. This presents significant challenges when establishing corporate ESG agenda, which in turn hinders financial institutions’ ability to drive green lending and investing. Data in particular will play a key role in delivering the traceability, transparency and insights to validate the ESG credentials of a company, a stock, or an investment strategy.
Financial institutions will need to embrace high volume data processing, drawing upon machine learning and artificial intelligence and leveraging data analysis and harvesting via smart analytics. The scale and complexity of managing and storing data means cloud technologies may also be considered as they look to map an optimal path forward to a futures model sustainable finance.
Examples of Capco’ s thought leadership around ESG, covering the macro, regulatory and data elements of sustainability in financial services can be found below.
INTERVIEW: THE GLOBAL SUSTAINABILITY CONSULTING MARKET IN 2022-2023
Together with Source Global Research, our ESG Practice Lead, Olaf Clemens, examines the prospect of a sustainable, green world of tomorrow from the financial industry point of view. Read this interview to find answers.
INTEGRATING ESG FACTORS INTO INVESTMENT STRATEGIES
Research has shown that ESG-related factors, when measured or estimated consistently, are meaningful data when making investment decisions. Leading firms are accordingly now incorporating ESG factor data across their entire portfolios to improve forecasting and risk management.
ECB-EBA ROADMAPS FOR CLIMATE AND ENVIRONMENTAL RISK
Climate-related and environmental risks are one of the ECB's key supervisory priorities and one of the main objectives of the EBA's Sustainable Finance Roadmap. Read this blog to learn more about the concrete milestones, particularly on the full integration of C&E risks into the ICAAP.
COP27 ASIA-PACIFIC OPPORTUNITIES FOR 2023
APAC FIs need to understand the opportunities and challenges arising from the COP27 climate summit. Our new article sets out the key focus points and their implications for the future, from the agreement on a new ‘loss and damage’ fund to the increasing urgency of climate financing and climate adaption.
LEVERAGING BANK DATA TO BECOME AN ESG INNOVATOR: THE FOUNDATIONS
This article shares how Capco’s ESG practice enables organizations to rapidly progress along their ESG maturity curve to systematically unlock long-term strategic benefits.
PRUDENTIAL TREATMENT OF ESG RISK
This article examines the European Banking Association’s analysis of the interaction between environmental risks and the traditional prudential risk categories, and proposes an action plan for firms to prepare for a potentially binding Pillar 1 treatment, in light of the EBA’s Discussion Paper published in May 2022.
REFLECTIONS ON COP27: WEEK TWO & FINANCIAL SERVICES IMPLICATIONS
The climax of COP27 delivered what has been hailed as “the most important climate advance” since the 2015 Paris Agreement”. Read our thoughts on week two and the takeaways for financial services.
THE MEANING OF GREEN: NAVIGATING TAXONOMIES FOR SUSTAINABLE FINANCING IN APAC
With countries and regions around the world seeking to green their financial systems by developing sustainability taxonomies, financial institutions will need to interpret taxonomies across different operating markets and respond to the challenge of collecting and managing sustainability data.
REFLECTIONS ON COP27
COP27 – the 27th Conference of the Parties of the United Nations Framework Convention on Climate Change – has kicked off with the key aim of ensuring full implementation of the 2015 Paris Agreement. Read our summary and related observations on the key developments during week one in Sharm El-Sheikh.
A LOOK AT CANADA'S CLIMATE RISK MANAGEMENT GUIDELINES
A look at a variety of Canada's climate risk management guidelines and associated risks.
ESG IN THE USA: AN OVERVIEW
Environmental, Social and Governance (ESG) initiatives have gained significant momentum over the past decade. These articles highlight the effect of ESG-driven imperatives on the financial services landscape.
4 EFFECTS OF THE EPA'S RFS REQUIREMENTS
On June 3, the EPA finalized their 2022 RFS requirements along with changes to the final 2020 and 2021 obligation years. There are several key actions that could have reverberating effects across the renewables landscape.
ESG &DLT: WHY BANKS NEED TO CONSIDER THESE AS A COMBINATION
In the financial services industry today, there are two trends that can hardly be bypassed: ESG and DLT. In this whitepaper we discover how DLT can help with ESG reporting, data quality and much more.
THE REC - RENEWABLE POWER GOES MAINSTREAM
The unique characteristics of RECs, including compliance requests and differing registry platforms, represent gaps and challenges to most ETRM solutions.
HOW CAPCO ENABLES CTRM SYSTEMS TO STREAMLINE & OPTIMIZE RENEWABLES TRADING
Global energy markets are experiencing a fundamental
shift in the way energy is produced, transported, stored, and consumed.
Reducing climate change effects via the removal of carbon emissions is the key
driver behind this historic transformation.
BANKING FOR THE GREATER GOOD
The unbanked and underbanked market offers a good opportunity for financial institutions to showcase their commitment to ESG.
ECB’S 2022 CLIMATE STRESS TEST: EUROPEAN BANKS FACE MAJOR CHALLENGES
Summary of the ECB’s 2022 Climate Stress Test results and challenges banks faced with the test and integrating climate risks into their risk management.
THE RISE OF RESPONSIBLE ROBOADVISING: ASSESSING THE CURRENT STATE OF AUTOMATED ESG INVESTING IN THE U.S.
ESG and Roboadvising, two of the most significant wealth management trends of the past decade, are colliding, providing huge opportunities for firms.
RAISING THE BAR ON CLIMATE
Climate change will have a material impact on financial services. The recent CBES exercise reaffirms the need to address the associated risks.
THE ART OF CLIMATE STRESS TESTING
The ECB is expected to publish the results of its first bottom-up climate stress testing in July 2022. Based on the outcomes, new requirements will be put in place for banks.
THE DARK SIDE OF ESG
ESG is shaping strategic discussions of corporates across industries like no other. The issue has moved from climate activists’ street protests to the top of business leaders’ agendas around the world. While there has been significant media attention on the substantial value of ESG, there are always two sides of the coin and the inherent risks of this “flight to green” should not be ignored.
SEC PROPOSES NEW ESG TRANSPARENCY DISCLOSURES
Environmental, Social and Governance (ESG) continues being a hot topic in the wealth industry. On March 21, 2022, the SEC proposed a new set of rules requiring more disclosures in registration statements and periodic reports.
A (SURPRISINGLY) CONVENIENT TRUTH — ESG FINDS A FOOTHOLD IN AMERICAN FINANCIAL SERVICES
While passing European-style legislation is unlikely, ESG is manifesting with a uniquely U.S. flavor — corporations are leading the way.
MANAGING RISK AND CAPTURING VALUE: A LOOK AT CANADIAN ESG TRENDS FOR 2022
The focus is on Canada’s financial institutions to act as wardens of environmental, social, and governance responsibilities in the Canadian economy – a multi-pronged challenge that encompasses both the need to manage risk and capture value as the market comes to terms with the new ESG realities.
THE ENERGY TRANSITION : A NEAR-CERTAIN ENDPOINT WITH AN UNCERTAIN TRAJECTORY
In this paper we explore the numerous challenges that must be overcome to ensure the continuing advancement of renewable energy resources.
RETHINKING THE FUTURE ENERGY TRANSITION
Current geopolitical events will have long-term implications for global oil and gas prices, which will in turn cascade through to impact not only home energy bills and forecourt prices but existing expectations and strategies around the planned energy transition to transform the global energy sector.
FEMALE FUTURE FINANCE PODCAST #27 | SUSTAINABLE FINANCE MIT MYRIAM PISER, STRATEGIC LEAD OF SUSTAINABLE FINANCE CORPORATES & MARKETS BEI BAYERNLB
Das Thema Nachhaltigkeit und Transformation im Finanzwesen steht im Fokus des Interviews mit Myriam Piser, Strategic Lead of Sustainable Finance bei der BayernLB.
FEMALE FUTURE FINANCE PODCAST #23 | ESG MIT ANNA SOPHIE HERKEN, BUSINESS DIVISION HEAD BEI ALLIANZ ASSET MANAGEMENT
In diesem Podcast spricht Anna Sophie Herken von Allianz Asset Management im Interview mit Agnieszka Walorska über das Thema Nachhaltigkeit und ESG-Kriterien.
RECONCILING ESG COMMITMENTS AND DIGITAL ASSET AMBITIONS
In this paper, we explore the intersection of the fast-evolving digital assets space and banks and financial institutions’ emerging ESG obligations.
TOWARDS NET-ZERO FOR APAC EMERGING MARKETS : A PROBLEM-SOLVING APPROACH FOR FINANCIAL INSTITUTIONS
In this paper, we explore progress to net zero in the Asia-Pacific (APAC) region and the implications for financial institutions’ climate actions, including decarbonizing portfolios and establishing ESG data strategies.
SUSTAINABILITY PREFERENCES – IT’S NOT ONLY CUSTOMERS WHO FACE DIFFICULT CHOICES
Our new paper explores how ESMA’s new consultative guidelines expect asset managers to assess investor ESG preferences, the implementation challenges and the strategic opportunities.
SUCCESS STORY: WIE CAPCO EIN CRO-DASHBOARD FÜR ALTERNATIVE ANLAGEN UNTER BERÜCKSICHTIGUNG VON ESG-RISIKEN ENTWICKELT HAT
Die Vermögensverwaltung einer globalen Universalbank identifizierte Projekte, die zur Marktführerschaft bei ESG-verantwortlichen Investitionen beitragen sollten. Erfahren Sie in unserer Success Story, wie Capco bei der Entwicklung und Implementierung eines CRO-Dashboards für alternative Anlagen unterstützte.
REDESIGNING DATA ASSIMILATION AND SOURCING STRATEGIES
This paper outlines approaches for assessing ESG data scoping and sourcing, and sets out one specific approach/best practice for incorporating corporate ESG data strategies.
COP26 – THE STORY CONTINUED FOR THE FINANCIAL SERVICES SECTOR
COP26: Clean energy transition and agricultural transformation will give rise to new funding demands, while a fundamental reassessment of risk management models also looks inevitable. Read our thoughts on the second week of the Conference.
COP26 – THE STORY SO FAR – FOR FINANCIAL SERVICES. IS THE SUMMIT ‘TALKING THE TALK’ OR ‘WALKING THE WALK’?
COP26: Nature-positive finance is the future. How do financial services firms kick-start the move and will their data be up to scratch?
THE EU GREEN BOND STANDARD
As the world tries to become greener, the EC’s recent proposal for greenbonds will impact the sustainable bond market. We examine green bond requirements and what this means for external verifiers.
This paper by Capco UK discusses the complex subject of conduct with climate change and how it is arguably one of the widest ranging thematic issues of our time.
ESG AND THE INSURANCE LANDSCAPE
With the advent of the COVID pandemic, organisations have started to prioritise their ESG strategy and corporate stewardship. Notably, financial services are accelerating their activities in this space, with the stark realities of COVID have come a wider appreciation of macro level risks in general – climate change included – and how these factors can dramatically turn the business tables. For insurers, this includes integrating ESG within the core business and operations, as part of underwriting, investing and risk management decisions, and developing tailored ESG products and services.
THE FINAL EU SUSTAINABILITY KPIs
Data availability and quality pose major challenges for meaningful sustainability reporting. One important step to achieve the necessary transparency and resolve data quality issues is having a clear and unambiguous definition of environmentally sustainable activities, as done by the EU Taxonomy. Thus, the introduction of key performance indicators (KPIs) is another major step to foster sustainability reporting and facilitate the usage of disclosed information.
CLIMATE CHANGE - A LOOMING CHALLENGE FOR THE WORLD, AND NOW THE BANKS
The Taskforce on Climate-Related Financial Disclosures (TCFD) has developed recommendations for more effective climate-related disclosures, subsequently adopted as the de facto standard for reporting climate-related information. Capco has undertaken a high-level review of 33 banks around the world who have committed to producing TCFD-aligned disclosures. This paper assesses each of the banks’ climate-related reporting against six key criteria.
APAC AND THE NEW ESG
Tomorrow’s green economy is taking shape, with ESG objectives at the top of the agenda for financial institutions both in APAC and globally. In this paper, Capco Hong Kong’s Brendan Delanty explores the current trends, challenges, and way forward for corporate banks.
CSRD: AN INTEGRAL ELEMENT OF THE SUSTAINABLE FINANCE FRAMEWORK
On 21 April 2021, the European Commission adopted a comprehensive package of measures to reorient the flow of funds towards more sustainable investments. An integral element of this sustainable finance package is the Corporate Sustainability Reporting Directive (CSRD) proposal.
SFDR: IS THE FINANCIAL SERVICES INDUSTRY READY FOR DISCLOSURE?
With the Sustainable Finance Disclosure Regulation (SFDR) and its gradual enforcement from 10 March 2021, the European Commission is implementing the second important building block of the EU Action Plan for Financing Sustainable Growth after the EU Taxonomy – transparency of sustainability.
ESG INVESTING: WHAT, WHERE, AND WHO?
A look at the driving forces and outlook of environmental, social, and governance investing in financial markets.
ESG – THE PATH FORWARD
In this video, we explore the issues of transparency and standardization around green investments, and the importance of establishing a common language and formal mechanisms to ensure consistency when detailing and validating ESG criteria.
ESG – THE PATH FORWARD
ESG is now a central consideration in the construction of investment portfolios. In this video, we visit a biomass plant and discuss the practicalities of adopting an ethical investment approach.
MILLENNIALS ARE MAKING AN IMPACT ON IMPACT INVESTING
The popularity of impact investments and online investment platforms is growing among millennials. We examine why and how wealth managers can adapt to serve this market.
ESG – THE PATH FORWARD
In this video, we look at the evolution of ESG, its place within the value chain of risk and risk management, the changing profile of the influencers shaping approaches to ESG as well as green investments, including the importance of standardization and transparency in ensuring investors can make informed choices.
THE RISE OF ESG
What is the role of a public firm in a free market? Traditionally, the answer would be to maximize value for its shareholders.
This still holds true, but there are now a much broader range of considerations for firms to meet, such as ESG factors, which have developed to a point where they are driving inflection in supply and demand.
You can find recordings and/or summaries of our past events below.
14 July 2022
REDEFINING ESG CLAIMS IN AN AGE OF GREENWASHING
Webinar recording now available. Watch our webinar which explores growing concerns about greenwashing in APAC’s booming sustainability market, and what can be done about it. The webinar brings together leading industry thinkers to look at the current state of greenwashing, lessons learned from other global regions about sustainability disclosures, and which strategies and tools can help institutions to substantiate ESG claims.
21 September 2022
THE RISE OF ESG IN ASSET MANAGEMENT
As growth in ESG assets under management continue to accelerate, the lack of a standardized ESG measurement framework, insufficient data transparency, and new regulations present major risks. Learn more about our discussion with industry leaders from our event held on September 21 in Zurich.
28 June 2022
ESG IN FINANCIAL SERVICES: MEETING THE CHALLENGE, MAXIMISING THE OPPORTUNITY
We are delighted to present to you the latest Capco Institute in partnership with King’s College London seminar ‘ESG in Financial Services: Meeting the challenge, maximising the opportunity’ which took place on Tuesday 28th June at the King’s College Bush House campus in London.
29 June 2022
REDEFINING ESG BEST PRACTICE AND DISCLOSURE
Join us at the City & Financial Global’s ‘ESG in the Current Context’ Summit on 7 June 2022 to discuss ESG in the context of current geopolitical events. Charles Sincock will be speaking on the role of fintech in easing the burden of data.
21 June 2022
INTEGRATING ESG STRATEGIES AND RISK MANAGEMENT IN FINANCIAL SERVICES
Join us at our next global ESG webinar on “Integrating ESG Strategies and Risk Management in Financial Services” on Tuesday, June 21st, 2022 to discuss ESG-related strategic business considerations and how to integrate emerging ESG risks into legacy risk management and governance structures.
11 May 2022
EDINBURGH: WHAT DOES THE FUTURE HOLD FOR ESG AND CLIMATE DATA
Join Capco and the SFE for a breakfast discussion titled ‘What does the future hold for ESG and climate data’. We will explore the current state of ESG data across financial services, sustainable finance and how to source the data to inform financial services firms’ commitments to Net-Zero financed emissions.
28 April 2022
CLIMATE CHANGE & ESG: WHAT FINANCIAL INSTITUTIONS NEED TO KNOW
Join Capco as we discuss the recently announced emissions targets for the USA and the climate change regulations being proposed as a result. We will explore what these new changes could mean for financial institutions and how they may be required to assess and report climate and ESG risks and impacts.
07 December 2021
ESG: CLIMATE RISK IMPLICATIONS FOR SWISS FINANCIAL INSTITUTIONS’ DISCLOSURE AND REPORTING
ESG is on the rise and firms are committing to reporting and disclosure practices. To discuss the opportunities and challenges that result from this, Capco has gathered a panel of leading industry experts from the financial sector. Join the interactive panel and learn more about the impact of environmental governance on businesses in Switzerland. We look forward to welcoming you.
11 November 2021
EDINBURGH: ESG - ELEVATING YOUR DATA STRATEGY
You are cordially invited to join Capco and the SFE for a breakfast discussion titled ‘ESG: Elevating Your Data Strategy’ on Thursday 11th November at the Glasshouse hotel in Edinburgh.
24 November 2021
WEBINAR: DELIVERING A GREENER FUTURE THROUGH BETTER DATA
Following the great success of our first webinar on Defining the Future of Sustainable Finance, we are very pleased to invite you to our next global webinar “Delivering a Greener Future through Better Data” on Wednesday, November 24th, 2021.
24 June 2021
WEBINAR: REGULATORY BURDEN OR BUSINESS OPPORTUNITY
In our first webinar we assess the rise of ESG and how global regulation is driving change and harmonisation across geographies. Bringing together an array of expert perspectives, the session offers a lively and thought-provoking exploration of the key issues.
MEET THE TEAM
If you're interested in discovering how Capco can help you with ESG and sustainable finance, please reach out to: