Sustainability

Realise the Transformation to a Sustainable Economy.

We believe that Sustainable Finance is not only a regulatory requirement, but also an opportunity for you to make an impact on our environment and create opportunities. Furthermore, we believe integration of sustainability risk will improve your risk management.

“Sustainable finance regulations are increasing in both magnitude and impact, and market participants are rising to meet the challenge.”

Developments in Sustainable Finance Regulations

Sustainable Finance is rapidly becoming a critical focus within financial regulations, despite being less recognized until now. The EU, along with the UN’s UNEPFI initiative, has significantly accelerated efforts in this area, introducing action plans for sustainable growth and aligning with the Sustainable Development Goals.

New regulations covering financial disclosures, KPIs, accounting standards, and climate risk impact analyses are being rolled out, often with tight deadlines and incomplete details. The DNB prioritises integrating climate-related risks into its supervision, signalling that sustainability risk is becoming a formal risk category for financial institutions.

This leaves the financial sector with limited time to prepare. We can assist you with:

Understanding new regulations and their impact
Defining your sustainability ambitions
Assessing organisational readiness and capacity
Organising change for regulatory compliance
Leveraging these regulations for business opportunities

Many institutions have already established basic frameworks for managing sustainability risk, evolving beyond initial reputational risk concerns.

Integrating Sustainability Risk: Enhance Resilience and Gain Competitive Advantage in Finance

Most risk policies haven’t been integrated into primary risk models due to inconsistent and unmeasurable indicators, with relevance varying by sector. This complicates designing a comprehensive framework. However, integrating sustainability risk offers clear benefits:

Enhanced resilience: Anticipate emerging risks.
Competitive advantage: Adapt to evolving expectations.

Despite these benefits, many struggle with the right approach. We can help strengthen your sustainability risk framework and guide integration efforts. In the analysis phase, sustainability frameworks assess environmental, social, and governance factors, which are often hard to quantify. The next step is evaluating client portfolios using scenario analysis and stress testing. We understand the challenges of data availability and traditional approaches. Our expertise in risk processes and regulatory developments provides a structured approach to effectively integrate sustainability risk.