"Sustainable finance” adds ESG (environmental, social and governance) factors to financial services with the aim of contributing to the transition to a more sustainable society.
Financial service providers face three challenges in this regard:
1. Strategy
Strategically, a financial services provider will have to deal with the question of whether it wants to proactively address the issue and seize opportunities or wait as a "follower" until regulatory changes or customer preferences in particular lead to an adjustment of the business model.
2. Legal and Regulatory Changes
The effects of existing, planned or emerging legal and regulatory changes must be analysed and may lead to adjustments where necessary. Existing self-regulation can serve as a blueprint, in particular the initiatives of the Swiss Bankers Association (SBA) and the Asset Management Association Switzerland (AMAS). Financial service providers that already voluntarily commit to these guidelines or implement their content are signalling their willingness to be transparent and are also strengthening their credibility with investors and clients.
3. Operational Implementation
The operational implementation at company level and, if necessary, at product level and at the point of sale integrates sustainable finance into the value chain. In addition to the investment process, risk management in particular must be subjected to a thorough review and adjustments made where necessary. Particular attention should then be paid to avoiding "greenwashing".
Regulatory & Compliance Financial Services helps you to fulfil the expectations of clients, investors and supervisory authorities.
