Overview
To limit annual global warming to 1.5°C, as stipulated in the Paris Agreement, greenhouse gas emissions need to be reduced by 45% by 2030 and reach net zero by 2050. To ensure a low-carbon economy, a group of more than 140 banks founded the "Net Zero Banking Alliance (NZBA)" and have committed to aligning their loan books to a net-zero economy by 2050.
Analysing client transition plans (CTPs) and continued engagement with clients to align their emission-reduction plans with banks’ commitment to net zero are key to the success of the NZBA. CTPs are essential for financial institutions to navigate the complex transition to a low-carbon economy. A CTP’s success would also depend on financial institutions aligning their business strategy with climate-related commitments and targets.
Global financial institutions have large ESG mandates; these present significant new opportunities in green financing. However, to implement strategy and achieve the ESG mandates, it is essential that financial institutions navigate this complex landscape through effective data management, portfolio monitoring, risk management and regulatory compliance. Regulators across the globe are also highlighting the need for new regulations and mandatory minimum disclosure reporting requirements, which would help key stakeholders better assess ESG risk.
Who we serve
Support we offer
- Identifying the bank’s exposure to high-emission sectors
- Segregating customers based on sector and the bank’s exposure
- Determining the scope of the work and the timeline for completing the CTP
- Capturing, evaluating and storing data on standard templates
- Working in line with standard operating procedures to ensure uniformity and accuracy of data captured
- Creating a centralised database of clients for monitoring and reporting CTPs
- Conducting research, groundwork and advisory for new business
- Assessing industry sustainability ambitions
- Compiling ESG KPI proposals
- Conducting peer reviews using sources such as MSCI and CDP
- Identifying and managing the medium- to long-term transition risk of the client portfolio
- Making decisions – on the client risk profile and business potential
- Dashboard and MIS reporting help banks assess emerging risks in high-CO2-emitting sectors such as coal and power
Support we offer
- Identifying the bank’s exposure to high-emission sectors
- Segregating customers based on sector and the bank’s exposure
- Determining the scope of the work and the timeline for completing the CTP
- Capturing, evaluating and storing data on standard templates
- Working in line with standard operating procedures to ensure uniformity and accuracy of data captured
- Creating a centralised database of clients for monitoring and reporting CTPs
- Conducting research, groundwork and advisory for new business
- Assessing industry sustainability ambitions
- Compiling ESG KPI proposals
- Conducting peer reviews using sources such as MSCI and CDP
- Identifying and managing the medium- to long-term transition risk of the client portfolio
- Making decisions – on the client risk profile and business potential
- Dashboard and MIS reporting help banks assess emerging risks in high-CO2-emitting sectors such as coal and power
How we are different
STRATEGIC AND CONSULTATIVE APPROACH
FLEXIBLE ENGAGEMENT MODEL
SCALABLE PARTNER
Further your ESG goals with our tailored data and technology solutions
Tailored support on integrating data sources, data management to strengthen your ESG framework and accuracy of reporting (Investor/regulatory).
What we have done
Supporting a Netherlands-based multinational bank’s climate transition plan towards a low-carbon economy
What we are proud of
Increased efficiency - Created a standardised database for the portfolio
Time saving - The front office was able to focus more on strategic and core work
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