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
ESG Capital Markets
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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
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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
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SDG research (goal alignment, impact assessment, theme research, impact analysis)
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ESG thematic and thought leadership reports
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Bespoke issuer ESG/ SDG/ Greenwashing risk ratings/ KPI tracking
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SBTi alignment for net zero/ 1.5-degree alignment
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ESG peer benchmarking using sustainability reports, annual reports of companies
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Sectoral ESG research
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Country policy towards sustainability/ESG disclosures and initiatives
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Decarbonization pathways- industry deep dives
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Materiality assessment with MSCI, SASB and Sustainalytics Indices
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Alignment review (UNGC, TCFD, GRI, EU Taxonomy)
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ESG Due Diligence support
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Drafting of sustainability reports
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Transition Finance Solutions
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Company ESG analysis
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Climate / Green bonds market updates
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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
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New bonds / pipeline issuance database
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Decarbonization strategies - carbon credit markets
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ESG Portfolio Screening
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Identify the banks’ exposure to high emission sectors
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Segregate the customers based on the sector and bank’s exposure
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Determine the scope of the work and timeline to complete the client transition plan
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ESG Client Transition Plan
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Capture, evaluate and store the data through standard templates
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Standard Operating Procedures based work to ensure uniformity and accuracy of data captured
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Create a centralized database of clients for monitoring and reporting of the client transition plan
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Green Loan Underwriting (SF lending)
Research, groundwork and advisory for:
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Client participation checklist
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Client pitches – pitch book, peer benchmarking, sustainability profile
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Eligibility checks as per new regulatory requirements (NFRD/CSRD)
-
KPI proposals for new loans and monitoring of existing loans
-
Sustainable finance deal reporting
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ESG Reporting
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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
-
Support we offer
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
-
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
Process Management
Centralized Database
Robust Reporting
Value for Money
Efficient Support
Effective governance structure
Marketing & Content
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
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
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
Our Perspective on Sustainable finance solutions for Banks
Compliance Newsletter Q3, 2024
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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.