Responsible Investments

Sustainable finance: obligatory, but also a strategic opportunity

Sustainable finance deserves top priority
Blog by Joukje Janssen, Partner Sustainability & Responsible Governance bij PwC

Many Dutch financial institutions see opportunities in sustainable finance, but implementing it in actual practice often remains problematic. Banks, insurers, asset managers, and pension funds that now express the strategic aim of being a leader in sustainable finance can position themselves as front-runners in the sustainable financial sector of the future.

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How to face the sustainable challenge

Sustainability is a subject rising on the agenda of the financial services sector. Clients ask for it, legislation requires it. Moreover, society calls upon the financial services sector to contribute to a sustainable future. Banks, insurance companies, private equity and other market players are seen as a crucial factor to finance and realise the transformation to a sustainable economy.

The financial sector is increasingly prepared to face the ‘green’ challenge. This forces institutions to cope with complicated issues and questions. How to be differentiating with sustainability? How to measure, report, and steer on sustainability? How to ensure sufficient financial return? How to operationalize sustainability throughout the organization?

Our approach in helping you understanding and managing ESG opportunities

Within the financial market, many organisations are not fully equipped to find and make sustainable investments. The inclusion of ESG (Environmental, Social, Governance) criteria in their investment process is new. For example, how can you find a way through various labels and quality marks? How to understand and manage ESG risks and opportunities? How to find responsible goals for profitable growth. How to monitor and report? To enhance strategy, unlock value, and build trust we will have a constructive and transparent dialogue with you and your stakeholders. We help you by:

Offering a dedicated team of experts within our global network;
Applying an integrated approach;
Relying on the experiences of former projects and clients best practices.

Our services

Our services are designed for financial institutions and capital markets. We help you navigate the complexities of mapping opportunities and risks relating to sustainability. Our services include:

Mainstreaming ESG into traditional investment processes, from strategy to execution.
Identification of ESG risks, formulation and implementation of responsible investment strategy and policy development, responsible portfolio management, setting up appropriate risk management processes, and monitoring (ESG Dashboards) and reporting.
Building trust through transparency
Measuring and communicating ESG performance in line with internal and external reporting practices and requirements - from legal requirements such as the EU Directives to climate risk and TCFD disclosure, human rights disclosures in line with the UNGP Reporting Framework, and integrated reporting.
Unlocking new opportunities and cost-efficient digital tooling
Offering data-driven tooling and products that screen your portfolio. The outcomes can for example be used for optimization, risk management and providing opportunities for sustainable growth (e.g. ESG benchmarks, impact investment, circular finance, FinTech, green bonds, etc.).
Workshops and learnings to stay ahead
Designing and delivering tailored workshops and e-learn solutions on responsible investing and lending. All our learning solutions are tailored to the client’s needs, ESG risk exposure, financial position and so forth. We have designed and delivered training for different financial institutions on - among others - the Equator Principles, IFC Performance Standards, UNPRI, UN Guiding Principles on Human Rights & Business, OECD instruments on responsible business conduct, Sustainable Development Goals, as well as sector specific risks with the aim of helping clients design their ESG policy approach.

Client Case: ESG due diligence counteracts corruption

The Dutch Good Growth Fund - Financing Local SMEs - (DGGF) – is an initiative of the Dutch government to stimulate entrepreneurship and create jobs in frontier markets. Amongst other things, PwC acts as the environmental, social and governance (ESG) manager, enabling the fund to maximize its impact on the ground, while keeping ESG risks at bay.

Read the client case