Responsible banking practices study 2021
Financial institutions increasingly recognise that climate change and other environmental, social and corporate governance risks jeopardise the world’s economy and financial system.
Finance for good
Sustainability has become a leading strategic priority for the financial sector. Climate change, in particular, is widely recognised as a major threat to the stability of the world economy.
Around the globe, investor, stakeholder and customer demands are pushing businesses to pay more attention to ESG factors when it comes to their commercial decisions and overall business strategy. Regulatory initiatives are similarly being adopted worldwide, requiring firms to account for their greenhouse gas emissions and more. One thing is certain: the financial sector needs to play a leading role in helping businesses and economies shape a practical roadmap to achieve net-zero carbon emissions by 2050.
To help provoke debate, discussion and progress on #FinanceForGood practices, Mazars is committed to sharing expertise on the adoption of sustainable practices, and partners with industry leaders and think tanks to conduct in-depth research on the state of play of the financial sector. Discover our full, and continually updated, selection of #FinanceForGood insight and perspectives below.
Tackling climate change: Mazars - OMFIF Report
Mazars and the Official Monetary and Financial Institutions Forum (OMFIF) are proud to have come together to produce a global report providing unique insight on current and upcoming financial regulatory evolutions aimed at tackling climate change. What policy adjustments are being undertaken in different jurisdictions around the world to assess and control climate risks? How are these actions...
The FSOC weighs in on climate risk
02/11/2021 The Financial Stability Oversight Council (FSOC) was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act as a result of the 2007-2008 US financial crisis. A first of its kind, the 15-member council is tasked primarily with identifying growing systemic risks to US financial stability and proposing coordinated regulatory responses to both preempt emerging...
Tracking the green transition with OMFIF
29/09/2021 There is no longer any question about whether to transition from brown to green finance – only how. Easy access to climate risk data and global regulation promises to help policymakers see the big picture and better understand what is missing in order to make the transition a success.
ACPR climate stress test pilot exercise results
22/09/21 Climate change introduces considerable economic challenges. On the one hand, financial institutions must contribute to the transition to a low-carbon and balanced economy to effectively combat global warming. On the other hand, the financial sector is exposed to climate-related and environmental risks and therefore needs to implement appropriate risk management practices within a...
Fostering a culture of sustainability
17/09/2021 The tone at the top typically establishes the foundations and values upon which a culture of sustainability is built. Developed at board level and communicated consistently across an organisation, ESG values need to be reflected in a bank’s governance structure if they are to last.
ESG investing: Three risks to consider
15/09/2021 The continued popularity of funds with an environmental, social and governance (ESG) focus has put global ESG assets on track to exceed $53tn by 2025, up from nearly $38tn at the end of 2020(1).
The case for improving sustainability disclosures
09/09/2021 Developing innovative products and harmonised frameworks across banking activities is crucial to achieving sustainable finance objectives and contributing to global transition targets. Yet, a lack of standardised reporting frameworks means identifying and comparing sustainable products and services remains a challenge.
ESG investing: From buzzword to mainstream
07/09/2021 A growing interest in environmental, social and governance (ESG) issues is driving record inflows into the ESG-led investment sector. During 2020, sustainable funds available to European investors attracted net inflows of €233bn1, which saw assets under management hit the $1.1tn milestone, accounting for almost 10% of total European fund assets.
Getting granular on emissions disclosure
06/09/2021 Banks are adopting risk management practices that account for climate-related risks in response to growing recognition that climate change negatively impacts operations and revenues.
PD in the context of climate risk
27/07/2021 Recently, initiatives to tackle climate-related and environmental risks in the financial services industry have begun across the world. These initiatives followed the adoption of the United Nations Paris Agreement on climate change, the 2030 agenda for Sustainable Development and the European Green Deal.
How to close the sustainable infrastructure gap
15/06/21 Infrastructure is of paramount importance to global economic development and sustainability. It underpins access to essential goods and services and will enable vulnerable countries to adapt to weather-related risks from climate change.
Benchmarking responsible banking: key figures
12/03/2020 Banks across the world are facing complex sustainability questions, from assessing climate-related risks to maximising green financing opportunities. Up against an unprecedented pandemic, investors, regulators and banks continue to firmly acknowledge the importance of solving environmental, social and governance (ESG) issues.
EBA: management and supervision of ESG risks
12/03/21 European sustainable finance regulations evolved considerably in 2020, and the European Banking Authority (EBA) is continuing this trend into 2021. It recently published a discussion paper assessing the potential inclusion of Environmental, Social and Governance (ESG) risks in the supervisory review and evaluation process (SREP) performed by national competent authorities (NCAs)
A toolkit for responsible investment decisions
04/03/21 Clarity of information provided to various stakeholders is a growing issue for financial organisations. Despite the efforts to increase transparency in recent years, historically, this has not always ensured the clarity of the information published. It’s a factor that has contributed to limiting public confidence in responsible investment. This is because it is only relatively recently...
How the insurance sector is meeting ESG challenges
04/03/21 When taking environmental, social, and long-term asset portfolio issues into consideration, insurance companies must assess the specific risks they face. As a result, the associated obligations of transparency mean that the entities concerned must adapt their risk management policies.
The impact of sustainable finance on insurers
04/03/21 Amid a global pandemic and a rising threat of climate change, today’s society expects financial organisations to uphold strong environmental and societal values. Given their critical role in the growth of the economy and citizens’ lives, insurers face close scrutiny.
The importance of CSR for real estate strategies
09/02/21 The pandemic has had a significant impact on our entire ecosystem. We have seen global CO2 emissions fall by a record 7% in 20201 benefiting the environment. Yet, at the same time, we have seen adverse consequences for the mental health of staff working remotely, with almost half (49%) of those working from home saying they have felt lonely or isolated2. Certainly, while previously...
The bank making a trillion-dollar investment
02/12/2020 Climate change has ruinous effects on the environment and is increasingly understood to be a major threat to economic stability. Financial institutions around the world, in response, are taking action by offering investment and lending products linked to clients’ sustainability credentials and achievements. In a recent interview with Mazars, Zoë Knight, Group Head of the HSBC Centre...
Challenges of the sustainable finance regulations
13/10/20 As the world gears up for the transition to net-zero, the European Union is setting ambitious targets with respect to its own environmental footprint. For instance, by 2030 the EU is looking to reduce European greenhouse gas emissions by at least 55% compared to 1990 levels; increase the share of renewables within Europe’s total energy consumption to 32%; and achieve energy savings of...
Banks’ response to climate change risk
Sustainable finance is expected to be a crucial factor in the post Covid-19 economic recovery period and regulators are encouraging banks to actively embed climate-related risks in their business operations and risk management frameworks. Against this backdrop, Mazars has analysed how 30 of the largest banks worldwide have been responding to climate-related financial risks.
ECB: aiming to improve gender diversity
11/06/20 American entrepreneur, Malcolm Forbes, once described diversity as “the art of thinking independently together”. Today, diversity is beginning to emerge as a quintessential workforce norm and institutions have started to acknowledge the differences in their staff compositions that are deeply ingrained in the fabric of their organisational culture. With many challenges remaining, the...
Gender Balance Index 2020 launches
Gender balance in central banks is improving but progress is slow, reveals index and report from Mazars and the Official Monetary and Financial Institutions Forum (OMFIF). The OMFIF Gender Balance Index tracks the presence of men and women in senior positions at central banks, sovereign funds and public pension funds. The study, now in its seventh year, scores and ranks institutions based on...
Are stringent gender diversity measures required?
20/05/20 Gender equality, while not systematically embedded in national laws, is clearly set in European law. The Capital Requirements Regulation (CRR) requires financial institutions to adopt a policy promoting diversity within their management bodies and, for the most significant ones, to set targets to reach gender-balanced boards.
Responsible banking practices study 2019
With Environmental, Social and Governance factors, and responsible banking practices more broadly becoming an essential focus for the banking industry, Mazars has assessed how banks are embedding sustainability into their commercial practices.
Responsible banking during the pandemic
15/05/20 What is the purpose of a bank? Does it have a responsibility to society at large, over and above its duties to its shareholders, customers and employees?
Financial regulation, Covid-19 and Climate change
04/05/2020 At first glance, regulatory authorities appear to have deprioritised the issue of climate change. However, a closer look would suggest otherwise and climate change in reality remains a key long-term priority of national and European regulators.
Developing a framework for climate-related risk
08/04/2020 As climate-related threats increasingly dominate our environment, attention is now turning to the impact on global financial stability. Mark kennedy looks at the effect on the financial services industry and how the regulatory landscape is likely to change.
Time to rethink risk
31/03/2020 Why integrating ESG should be a strategic priority in financial services.
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