Sustainable finance

It is increasingly recognised that climate change and other ESG risks jeopardise the world’s economy and financial system. Financial institutions need to find the right balance between managing these risks and seizing the opportunities generated by the transition to a more sustainable world. They have a key role to play towards the reorientation of capital flows, the mitigation of risks and the financing of innovation to facilitate the energy transition. 

At Forvis Mazars, we are committed to helping banks, asset managers and asset owners implement the changes necessary to meet their sustainability goals. We support financial institutions to navigate complex risks, make the most out of opportunities emerging from the transition to a more sustainable economy and to generate a positive impact.

Our sustainable finance services

Regulatory requirements and sustainability standards

A growing number of sustainability regulations such as the SFDR (Sustainable Finance Disclosure Regulation) have recently entered into force, affecting financial institutions with activities in the EU. Additionally, self-regulation applies in the Swiss market. Assessing the implications, defining an appropriate strategy, adjusting organisational structures, processes and product lines, as well as ensuring appropriate disclosure and marketing materials is a complex task. Forvis Mazars provides services in the areas of:

• Identification of the regulations that asset managers, banks and asset owners must comply with
• Support in strategy development and implementation
• Appropriate reporting and disclosure to investors, avoidance of greenwashing
• Provision of training for management and employees

Development of a sustainable product offering

The expectations from investors, borrowers and other stakeholders are changing and the demand for sustainable products and services is growing. This trend is accentuated by the transfer of wealth and positions of power to a younger generation, who tend to attach greater importance to sustainability. By adjusting the product and service offering to appeal to this clientele, financial institutions with a strong sustainability product offering can gain new customers, distinguish themselves from competitors, and be prepared for the future. Forvis Mazars supports you to:

• Define an appropriate strategy, positioning, policy and governance in relation to investment and financing
• Integrate sustainability criteria into the investment and financing process
• Define products with differing objectives, e.g. ESG risk management, alignment with SDGs (Sustainable Development Goals) or positive impact creation
• Define an appropriate strategy and implementation of suitable processes with regard to engagement and stewardship
• Develop marketing materials and appropriate regulatory disclosures

ESG data and sustainability assessments

Identifying and sourcing the appropriate sustainability data remains a difficult task. Many investee companies do not yet report on ESG matters and the comparability of reported data is often lacking. The variety of reporting standards and disclosure frameworks pose an additional challenge to this issue. Understanding data and integrating it into the organisation is another complexity that needs to be addressed. Forvis Mazars offers the following services:

• Evaluation of suitable providers of climate and sustainability data and ESG ratings
• Support with data evaluation and sourcing
• Integration of data into the processes that relate to investment, financing, regulatory disclosure and client reporting
• Sustainability assessment of investees without public data
• ESG due diligence

Carbon footprint assessment, disclosure and reduction in portfolios

New rules and regulations such as the Paris Agreement or the Swiss “Climate and Innovation Act” define goals such as limiting the temperature increase to 1.5°C above pre-industrial levels or transitioning to a net zero economy. Such targets require a profound economic and social transformation. Financial service providers play a pivotal role in this transformation by allocating capital to companies that make a positive contribution. In order to support the transition to net-zero, decarbonisation targets need to be set, appropriate investment and financing strategies implemented, and the temperature alignment of investment portfolios needs to be measured. Forvis Mazars can support you with:

• Transparency on the climate compatibility of portfolios, including the measurement of GHG emissions and temperature alignment (e.g. Swiss Climate Scores)
• Managing investment risks that arise from climate change
• Investment and financing strategies aimed at reducing greenhouse gas emissions

Our added value

At Forvis Mazars, we specialise in guiding the financial sector through complex sustainability challenges. Our experienced team leverages unique expertise in sustainability, governance, and risk management to help clients seize emerging opportunities and adhere to sustainability principles while navigating the regulatory landscape.

To provide you with an in-depth analysis of the international aspects of environmental, social and governance issues, we can call on our sustainability specialists in the countries concerned, where appropriate.

We aim to enhance the stability and integrity of the financial system by supporting a shift toward sustainable and inclusive growth and a re-direction of capital to finance this crucial transition. Our comprehensive approach extends from readiness assessment to full implementation, ensuring compliance with evolving sustainability regulations and meeting the expectations of stakeholders.

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