Green Finance
Our sustainability experts at PwC will advise you on every element of sustainable corporate governance – including assessing the various strategic implications of climate change and environmental and social impacts via implementing the requirements for a sustainable financial economy.
We can support you by performing ESG gap analyses, providing recommendations on how to close the gaps and implement new regulatory requirements, providing insight into ESG risks, shaping responsible and sustainable digitalisation, and assisting you as regards the capital market requirements for companies. We will work with you to shape your company's transformation into a sustainable enterprise – for the long-term success of your business.
Sustainable Finance
Sustainable finance encompasses all activities by financial service providers that seek to reduce harm to the environment and climate, promote social engagement and encourage sustainable corporate governance. The Paris Agreement and the EU Action Plan derived from it set out concrete sustainability goals for the financial sector and represent the cornerstone of sustainable finance. Sustainable finance will ensure capital flows to more sustainable investments, and that there is more emphasis on environmental risks and that transparency is encouraged. In this way, the financial services sector will support the transformation of the overall economy and guide it towards sustainability.
This will be realized by extensive changes to disclosure obligations, MiFiD II, and by introducing new rules and regulations such as labelling for green financial products, a standardised EU classification system via the EU Taxonomy and EU standards for non-financial reporting.
Financial service providers will need to work to bring their economic objectives into harmony with the new ESG rules and regulations and change their business models. Financial institutions need to go beyond the regulatory minimum, starting with their own strategy to stand out from the competition and pioneer new business areas.
Our team of experts can support you during your ESG transformation, and help you understand ESG legislative requirements and processes that need to be implemented. Our expertise covers the whole spectrum of potential issues encountered when implementing regulatory requirements. When implementing new regulatory requirements, our clients benefit from PwC’s holistic approach - from developing strategies to integrating them into day-to-day business.
Implementing ESG into institution’s risk management
ECB Guide on climate-related and environmental risks
The European Central Bank (ECB) Guide on climate-related and environmental risks presents the ECB’s expectations on how banks should incorporate climate and environmental risks into their risk culture, risk appetite, risk monitoring framework and loan portfolio management. It also defines the banks’ expected disclosures on ESG matters, in particular Scope 1, 2 and 3 GHG emissions. This guide is mandatory for financial institutions under direct ECB oversight, and optional for other institutions.
EBA Guidelines on loan origination and monitoring
European Banking Authority (EBA) Guidelines on loan origination and monitoring require banks and lending institutions to incorporate ESG risks into their risk management framework and take into account ESG factors when assessing their counterparties in their credit-granting processes. Currently mandatory for credit institutions under direct ECB oversight, after implementation by the National Bank of Slovakia, it will be mandatory for all credit institutions in Slovakia and potentially also for consumer loan providers. EBA Guidelines on loan origination and monitoring are effective from June 2021 for ECB-overseen credit institutions. After NBS transposition into local law the Guidelines will be mandatory for all credit institution and/or consumer lending in Slovakia.
We can support you with:
- 1. Assistance with positioning
- 2. Impact analysis
- 3. Roadmap and recommendations
- 4. Risk management
- 5. ESG Rating Methodology
- 6. Implementation guidance
- 7. Implementation
1. Assistance with positioning
Description:
- assistance with development of strategic positioning guidance
- concept for target strategic model
Client benefit:
- holistic approach to sustainable finance
- development of shared understanding
