Scaling the ESG opportunity: Tactics for corporate banks navigating ESG finance
Banks have to integrate the right players into their team to win the race, as the demand for ESG-related products continues to rise. Technology is becoming the key enabler for banks to facilitate ESG solutions
Default Finastra
A recent survey of 250 ESG heads from global banks revealed that despite 75% of banks reporting the intention to increase ESG exposure, banks are still developing the fundamentals of their overall ESG strategy, with half of the them identifying lowering carbon emissions from their enterprises as their top ESG objective. This is despite a growing need to adapt to ever-increasing demand for ESG-related finance from corporates, as well as the risk of likely future regulation.
But before strategies are put in place, financial institutions must overcome obstacles, including defining and securing longer-term funding for ESG goals, as well as coordinating board, management, and governance on sustainability initiatives.
To accomplish this, corporates must collaborate with fintechs to prioritize offering ESG-related lending solutions that will enable them to support ESG projects.
