For many business leaders today, Environment, Social and Governance (ESG) will be three letters that have become the backbone of many a board meeting. ESG encompasses the three central risk factors that businesses are measuring the sustainability and societal impact of how they operate, invest and behave. In this new paper, we look at why the ‘S’, Social, is so important.
When thinking about ESG, sectors that come to mind are often extractive industries like mining or resource-intensive enterprises like manufacturing and construction. One sector for whom ESG is fast becoming the most important is retail banking.
Not only do banks consume resources and have an environmental footprint like any business, but many also provide financing to infrastructure, building and other projects that have an impact on the environment.
A bank’s lending policies have a social impact, from the adverse effects of discriminatory lending to the positive impact of green building loans. A bank's governance practices can significantly affect the bank's reputation, regulatory standing, and revenues. It’s in this context that banks must first focus on some key ESG hygiene factors.
This latest paper by Janine Chidlow, Managing Director of Retail Banking and Insurance, will help to answer some of the following questions:
- Does your organisation know what is expected of it and does it have an ESG strategy?
- What best practice support is available?
- Why is the ‘Social’ aspect so important?
- What impact can your leaders and stakeholders have?