Sustainable finance solutions for Banks

Overview

In the banking sector, ESG integration represents a transformative shift towards responsible finance. By integrating ESG factors into lending, investments, and sustainable finance products, banks are better positioned to manage risks, meet rising investor and customer expectations and also contribute to the creation of a resilient and sustainable global economy. This integration influences various aspects of banking, from investment strategies to lending practices, ensuring that capital is allocated to projects with positive environmental and social impacts.

Regulations like the Sustainable Finance Disclosure Regulation (SFDR), Corporate Sustainability Reporting Directive (CSDR), and other climate-related disclosures pushed by the Securities and Exchange Commission (SEC) in the US are driving banks to adopt more robust ESG strategies and enhancing their role in fostering sustainable finance.

Support we offer

Acuity’s ESG support for Investment Banks

  • ESG Capital Markets

    • Borrower / Issuer ESG analysis

    • Sustainable bonds market updates

    • Competitive positioning based on ESG KPIs

    • SPO providers analysis

    • Sustainable DCM pitches

    • Mapping climate targets

    • ESG framework assessment

    • Sustainable bonds database

    • Drafting green / social finance framework

    • Sustainable bonds pricing

    • Sustainable bonds orderbook analysis

    • Investor profiles


  • Sustainable Finance

    • Company ESG analysis

    • ESG market updates

    • Competitive positioning based on ESG KPIs

    • Company's sustainability targets & strategy alignment with UN SDGs

    • Sector-wise analysis

    • Decarbonisation pathways

    • Mapping climate targets

    • ESG framework assessment

    • ESG taxonomy research

    • Climate change framework analysis

    • Complex ESG framework

    • ESG regulatory research

    • Tracking daily sustainability linked issues

    • ESG scoring or rating analysis

    • Support on pitch books

    • Sustainability disclosures (commitments, policies, reports) and initiatives


  • ESG Advisory

    • SDG research (goal alignment, impact assessment, theme research, impact analysis)

    • ESG thematic and thought leadership reports

    • Bespoke issuer ESG/ SDG/ Greenwashing risk ratings/ KPI tracking

    • SBTi alignment for net zero/ 1.5-degree alignment

    • ESG peer benchmarking using sustainability reports, annual reports of companies

    • Sectoral ESG research

    • Country policy towards sustainability/ESG disclosures and initiatives

    • Decarbonization pathways- industry deep dives

    • Materiality assessment with MSCI, SASB and Sustainalytics Indices

    • Alignment review (UNGC, TCFD, GRI, EU Taxonomy)

    • ESG Due Diligence support

    • Drafting of sustainability reports


  • Transition Finance Solutions

    • Company ESG analysis

    • Climate / Green bonds market updates

    • Competitive positioning based on ESG KPIs

    • SPO providers analysis

    • Mapping climate targets

    • ESG framework assessment

    • Sustainable bonds database

    • Drafting green / social finance framework

    • ESG Indices / Ratings Analysis

    • New bonds / pipeline issuance database

    • Decarbonization strategies - carbon credit markets


Acuity’s ESG support for Corporate and Commercial Banks

  • ESG Portfolio Screening

    • Identify the banks’ exposure to high emission sectors

    • Segregate the customers based on the sector and bank’s exposure

    • Determine the scope of the work and timeline to complete the client transition plan


  • ESG Client Transition Plan

    • Capture, evaluate and store the data through standard templates

    • Standard Operating Procedures based work to ensure uniformity and accuracy of data captured

    • Create a centralized database of clients for monitoring and reporting of the client transition plan


  • Green Loan Underwriting (SF lending)

    Research, groundwork and advisory for:

    • Client participation checklist

    • Client pitches – pitch book, peer benchmarking, sustainability profile

    • Eligibility checks as per new regulatory requirements (NFRD/CSRD)

    • KPI proposals for new loans and monitoring of existing loans

    • Sustainable finance deal reporting


  • ESG Reporting

    • Identify and manage medium to long term transition risk of the client portfolio

    • Decision making – on the customer risk profile and future business potential

    • Dashboard and MIS reporting will assist banks in assessing the emerging risks in high CO2 emitting sectors like Coal, Power


How we are different

ESG SME Deployment and Operational Flexibility
ESG SME Deployment and Operational Flexibility
Experienced team in transitioning of projects with flexible staffing model to manage spikes and seasonality
Process Management
Process Management
Standardized approach facilitates smooth monitoring and credible transition of work at scale
Centralized Database
Centralized Database
Capture, evaluate and store d ata supports regular monitoring and MIS reporting
Robust Reporting
Robust Reporting
Robust & timely MIS reporting for regulatory filings and key decision making
Value for Money
Value for Money
40-50% lower cost of project
Efficient Support
Efficient Support
Increased bandwidth for support on live sustainable financing deals
Effective governance structure
Effective governance structure
Weekly and monthly governance calls to discuss the project status and achievement of key milestones
Marketing & Content
Marketing & Content
Content generation support to ESG teams

Our Data Source Platform Expertise

Sustainalytics

Sovereign Data portal

Responsible Minig Fundation

RepRisk

Refinitiv

Our world in Data

MSCI

ISS

Iea

Greenhouse Gas Protocal

Glass Lewis

CDP

Bloomberg

What we have done

Support for Consulting and Corporate Firms
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

ESG Advisory Support To The Client On Developing Sustainable Finance Frameworks For The Corporates
What we are proud of

20%

Increased Efficiency

Significant cash savings for the client due to strategic and real-time support

Transition Finance Support To A Global Investment Bank
What we are proud of

Client Growth: Significant increase in the number of clients due to the use of scalable solutions

Time-Saving: Able to devote time to strategic work and core tasks

ESG Support For A Japanese Investment Bank
What we are proud of

20%

Time saving

18-20%

more client-facing time

Sustainable Finance support to an APAC focused Investment Bank
What we are proud of

Domain expertise in the ESG and Sustainable Finance space

deep dive analysis and specialization for clients, streamlining ESG taxonomy

Identify areas of sustainable financing in emerging markets and Europe

Support for Consulting and Corporate Firms
Sustainable finance support for a global investment bank
What we are proud of

Bespoke solutions for sustainable investing and green finance

Support to senior client MDs in London and Singapore on knowledge initiative projects and value-added insights

Meet our experts

Thank you for sharing your details

Share this on

Frequently Asked Questions

What is sustainable finance investment banking?

Sustainable finance investment banking integrates environmental, social, and governance (ESG) criteria into financial decisions. It supports projects and companies that prioritize sustainability, offering products, advisory services, risk assessments, and impact investing opportunities. Its goal is to align financial returns with positive environmental and social impacts, promoting long-term, responsible investment practices. Investment Banking has been creating a pool of issuances focused on creating sustainable impact, such as green bonds and other forms of finance and financial solutions, intending to achieve a sustainable society. IBs now have separate departments that assess a company's ESG performance alongside financial metrics to evaluate risk and potential returns.

What are sustainable financial services?

Acuity has been supporting investment banks (IB) by providing offerings that incorporate the growing demand for ESG-related information and analysis. We conduct in-depth ESG research and analysis on companies and investment opportunities, assigning ESG ratings or scores to companies to allow investors to quickly gauge a company's ESG performance. We also produce ESG reports, whitepapers, and insights that analyze ESG trends, risks, and opportunities in specific industries or regions. In addition to the above Acuity helps IB divisions of global banks analyze, benchmark, and collate IB’s clients based on multiple parameters of focus. This is dependent on the focus of the financing required and planned by the client and IB respectively.

What are the various categories of support provided across sustainable finance?

As a financial research firm, Acuity has been supporting the objectives of IBs and Asset Managers since the last 20 years. We have a pool of expertise to support Investment Banks across pillars of ESG Advisory, ESG Capital Markets, Sustainable Finance Advisory, Transition Finance Advisory and Social Sustainability / Impact Investment Support. We also provide thought leadership through research reports, white papers, and webinars on sustainability trends, ESG best practices, and market developments, helping banks stay informed and educate their clients.

Load more