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The investment bank faced several challenges in developing and implementing an effective ESG strategy:
A major investment bank with over 40,000 employees and 200 branches worldwide sought to embark on its Environmental, Social and Governance (ESG) strategy.
With products sold in over 65 countries, the bank recognised the importance of integrating ESG principles into its operations. To begin this transformative journey, the bank sought a Subject Matter Expert partner to help design and implement its ESG program.
Org was appointed as a co-sourced partner to the bank’s in-house ESG team to support the delivery of the ESG strategy.
The solution included several key components:
Org worked closely with the bank’s ESG team to establish robust governance arrangements. This included developing an overarching ESG strategy that aligned with the bank’s global operations and goals.
Org identified a new class of risk – climate risk – and conducted comprehensive assessments of physical and transition risks. This included evaluating the direct and indirect impacts of climate risk on other risk profiles across all portfolios and asset classes.
Org performed an end-to-end review of the bank’s current ESG framework and arrangements. Based on this review, Org developed a comprehensive ESG strategy and related plans, including:
– Operating model
– Delivery roadmap
– Risk management framework
– Stress testing plans
– Reporting frameworks
Org provided members from its Risk and Data Analytics & Modelling teams to develop a tailored approach for utilising data to measure, manage and monitor the impact of climate risk.
Org supported the bank’s in-house ESG team in reviewing and enhancing existing modelling capabilities to better assess and manage ESG-related risks.
Org’s co-sourced partnership with the investment bank’s in-house ESG team enabled the bank to embark on its ESG strategy effectively. By developing a comprehensive framework, enhancing risk management practices and integrating advanced data analytics, Org helped the bank navigate the complexities of ESG integration. This case study highlights the value of expert advisory services in driving sustainable growth and operational excellence in the financial sector.
With Org’s support, the investment bank achieved significant advancements in its ESG journey:
The bank now has a comprehensive ESG framework that includes a well-defined operating model, risk management framework and delivery roadmap.
The tailored approach to data analytics and risk modelling provided the bank with advanced tools to measure, manage and monitor the impact of climate risk on credit and market risk profiles.
The new governance arrangements and reporting frameworks ensured that ESG principles were embedded into the bank’s operations, enhancing transparency and accountability.
The bank successfully integrated ESG considerations into its core strategy, aligning its operations with global best practices and regulatory requirements.
