ESG: DEFINING THE FUTURE OF SUSTAINABLE FINANCE
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.

Having initially focused on the Environmental aspects of ESG, Social and Governance considerations are now also key priorities. 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.

Existing approaches to implementing ESG frameworks and best practices are not harmonized across individual markets and regions, however, whether in terms of agreed definitions or pace of adoption. This has given rise to significant challenges when establishing corporate ESG agendas, which in turn hinders financial institutions’ ability to drive green lending and investing.

We are now seeing increased engagement by regulators to align around a more unified approach to ESG. And if regulation is the driver of change, then data 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 need to be considered as they look to map an optimal path forward to a future model of sustainable finance.

 

Capco will be presenting a 2021 global webinar series on ESG, sustainable finance and the wider transformation of the financial industry in the coming months. Our initial two sessions will bring together expert panellists, including board level executives, leading academics, and governmental and regulatory advisors, to address two key themes that are driving the evolution of ESG: Regulation and Data. 

Our partner in this webinar series will be renowned international law firm Simmons & Simmons, whose ESG teams in Frankfurt and London will offer perspectives on the key topics, challenges and opportunities. 
Examples of Capco’ s thought leadership around ESG, covering the macro, regulatory and data elements of sustainability in financial services can be found below. 
9 MAY 2022
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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.
06 APRIL 2022
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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.
29 MARCH 2022
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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. 
 
25 MARCH 2022
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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.
23 MARCH 2022
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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.
23 MARCH 2022
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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.
21 MARCH 2022
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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.
22 fEBRUARY 2022
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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.
21 FEBRUARY 2022
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SUCCESS STORY: HOW CAPCO CREATED A CRO DASHBOARD FOR ALTERNATIVE INVESTMENTS INCORPORATING ESG RISKS

An Asset Management arm of a global universal bank, identified several projects to support their ambition to be a leader on ESG responsible investment. This success story shows how Capco supported this effort by implementing a CRO dashboard for alternative investments.
02 DECEMBER 2021
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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.
16 NOVEMBER 2021
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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.
05 NOVEMBER 2021
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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?
27 OCTOBER  2021
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 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. 
7 SEPTEMBER 2021
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CLIMATE CONDUCT & FINANCIAL SERVICES: TOMORROW'S MIS-SELLING SCANDAL?

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. 
27 AUGUST 2021
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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.
13 JULY 2021
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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.
29 JUNE 2021
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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.

24 june 2021
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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. 
11 mAY 2021
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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.
11 MAY 2021
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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.
25 APRIL 2021
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ESG INVESTING: WHAT, WHERE, AND WHO?

A look at the driving forces and outlook of environmental, social, and governance investing in financial markets.    
12 APRIL 2021
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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.
1 DECEMBER 2020
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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.
20 OCTOBER 2020
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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.  
9 OCTOBER 2020
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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.
19 JUNE 2020
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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.