“Our biggest challenge in this new century is to take an idea that seems abstract – sustainable development – and turn it into a reality for all the world's people,” said Kofi Annan, the Secretary General of the United Nations, at the beginning of this millennium. Allow us to outline the current market trends here and how we, as IBM, can help you to harness these and even stay ahead of time.


The future is now

92% of CEOs believe that the integration of sustainability is important to the future success of their businesses.

United Nations Global Compact 2019

Excecutives state climate change is a “significant risk factor”

SRI Investments

In total, EMEA already invested USD14 trillion in SRI assets. Within the banking industry, companies like Atmos and Aspiration let you manage your everyday finances in an environmentally-friendly way. By refusing to invest in the worst corporations doing the most harm to the planet and other people, investors are helping to drive a change.

Enhanced reporting needs to be a priority (over changing strategy, practices)

Customer behavior

90% of citizens say it’s important for businesses to sign up to the SDGs, while 71% of businesses say they are already planning how they will respond to the SDGs. 75% of people in Europe prefer sustainably managed companies as customers and as employees.

Banks executives are “extremely concerned” about climate change

ESG meets SMEs

SMEs are increasingly providing information regarding environment, social and governance at the request of investors, ESG ratings providers, credit rating agencies, and other motivated stakeholders (e.g. climate or human rights NGOs).


Banking imperatives

Banks must adopt a hypothesis driven, accelerated approach to identify relevant
responses to the massive challenges around sustainability

Key market imperatives

Growing risk of climate-related extreme weather threatens major disruption to supply chains, business models and economies

Consumers will increasingly demand that banks align
with their values on sustainability

Investors increasingly demand reporting and action on sustainability, punishing laggards with shareholder action and threat of divestment

Governments are globally ramping up mandatory requirements around environmental reporting and management

What banks
must do

Build resiliency and reduce financial losses; calculate
and understand the financial impact of climate change related risks

Develop new green products in financing and investment and enhance customer involvement

Transform their operating model to ensure sustainability is scaled
throughout the organization

Leverage sustainability reporting to control performance and support market communication

What if banks could…

Turn data insights into clear priority areas for rebalancing the bank’s balance sheet based on sustainable portfolio targets?

Leverage state-of-the-art platforms and AI solutions to gain more insight into sustainability needs of clients and investors?

Set up a sustainability COE to ensure focus and commitment backed by metrics and control tower for progress monitoring?

Establish a consistent way of measuring and capturing relevant data with automating reports creating transparency and efficiency?


Way forward

According to envizi, most organizations feel their ESG reporting is “just getting started”.

ESG reporting maturity level

Read source

    • Develop processes for data management and ownership
      Data-driven decision-making is only valuable if the data is accurate, complete and up to date. Effective data management requires dedicated attention to detail, ownership, and diligence.
    • Work with utility providers
      Make use of the energy data providers decarbonization strategies and source interval meter data directly from utility providers. When this is not possible, explore sub-meter options.
    • Create a single, trusted source to store and share your data
      Data is an increasingly valuable resource for guiding business decisions. Hence, it should be made accessible to both internal and external stakeholders.
    • Create a robust and flexible data structure
      Data must be organized in a structured way to support the decarbonization target. Consider which types of data an organization needs to capture and how the data should be tagged and aggregated for reporting.

    Let's talk!

      Marinela Bilic-Nosic

      Executive Partner Banking

      Regulatory, Risk, Compliance Lead DACH
      +49 173 7206070

            Christina Rohschürmann

            Senior Managing Consultant

            Banking & Financial Markets

            +49 172 2665833