Climate Risk & ESG

Climate risk refers to the potential financial and operational impacts that climate can have on organizations as well as to effects an organization has on the climate and environment (“double materiality”). Climate risk management and the wider Environmental, Social and Governance (ESG) factors are gaining increasing importance in the banking sector as regulators strengthen requirements around ESG risk management and reporting. Together with banks’ strategic ESG positioning, these regulations underscore the critical need for integrating sustainability into banks’ business models as well as risk management and reporting frameworks, enabling them to not only mitigate risks within defined appetites but also effectively report on climate-related matters.

Are you asking yourself:

Are climate risk aspects sufficiently integrated into the strategic and operative financial- and non-financial risk management respectively, is the bank on track to effectively integrate those?
Have ESG & climate risk related regulatory requirements been implemented in an audit-proof way?
Has the bank established effective metrics and monitoring/reporting to manage its climate risk & ESG strategy and report on an ongoing basis to internal and external stakeholders?
What strategies and measures can be taken to improve the bank’s sustainability footprint and achieve defined ESG medium- and long-term objectives and transition plan?

What you will get from us:

Guidance to implement new regulatory requirements in an audit-proof manner
Support in integrating climate risk aspects into strategic and operational risk management
Help in defining risk appetites and establishing metrics and monitoring systems
Tools and resources regarding the sourcing and analysis of climate data, essential for risk assessments as well as for making informed decisions and achieving compliance with regulatory requirements
Insights on best practices and support on how your bank can become more sustainable and reduce its climate risk exposure

Our Approach

Regulatory Mapping:

Begin with a thorough evaluation of current practices and the regulatory landscape to identify gaps and opportunities for integrating ESG & climate risk into the strategic and operational risk management framework
Tailored solutions:

Based on our assessment, we develop customized strategies that align with the bank’s specific needs and regulatory requirements, ensuring that ESG & climate risk considerations are embedded within financial and non-financial risk management.
Effective internal reporting:

We support your organization in the definition of ESG & climate risk appetites and transition plans as well as in the identification and sourcing of metrics for internal risk reporting and monitoring
Sustainable integration:

Once risk management and reporting solutions have been designed and aligned with relevant stakeholders, we implement them in an audit-proof way. This also includes the implementation of solutions that help you to reduce ESG & climate risk in line with defined targets
Continuous support and training:

We offer ongoing support and training to ensure your team is equipped with the knowledge and tools needed to adapt to changing regulations and market dynamics