Sustainable finance

The financial industry holds a unique position with its funding power and capacity to raise awareness of sustainability across the economy. As sustainability issues evolve, the financial industry must now reconsider its strategy, activities, and investments. To be effective, it requires an approach that identifies and manages risks and opportunities across the value chain.

ESG governance and risk management

Increasing recognition that environmental, social and governance (ESG) risks jeopardise the world’s economies and financial systems requires financial institutions to find ways and develop methodologies to examine and manage evolving risks. Equally, devising strategies that seize the opportunities generated by the transition to a more sustainable world is essential. Managing sustainability issues and accompanying regulatory responses are a source of risks and opportunities. Firms must understand, analyse and quantify the latter to make informed decisions.

Sustainable investing and financing

In response to shifting expectations from markets and consumer preferences and behaviours, financial institutions are expected to invest capital in ways that consider the need to preserve the natural environment and advance society’s long-term interests. As a result, financial institutions need to develop new products and services and integrate ESG factors into existing and new offerings. Specifically, the industry can provide financial support in the form of capital, financial services and insurance, amongst others, to businesses and projects involved in building adaptation and resilience capacity to climate change and promoting a more equitable world.

Sustainability strategy

As with every corporate organisation, the financial industry is expected to maximise the positive environmental and social impacts of their operations and investments. The industry can achieve its goal by aligning financial practices, such as lending, investing, or underwriting, with international agreements and frameworks, including the UN Sustainable Development Goals (SDGs) and the Paris Climate Agreement. Creating a robust ESG strategy, defining a pathway and setting clear targets and goals are critical. Equally crucial is determining high-priority and long-term actions, as well as measuring and disclosing progress.

How can Mazars help?

At Mazars, we have experience in supporting the financial sector to navigate complex risks, make the most of emerging opportunities in the transition towards a sustainable future, adhere to sustainability principles, and respond to regulatory expectations.

Our purpose, we believe, is to contribute to the stability and integrity of the financial system. We aim to support the paradigm shift in the financial sector and the redirection of capital towards funding the transition and achieving sustainable and inclusive growth.

We have professionals who offer a unique combination of sustainability, governance, and risk management expertise. Our extensive regulatory experience supports clients from readiness to implementation as they journey towards achieving compliance with increasing sustainability supervisory requirements and meeting stakeholders’ expectations.

We support the financial services industry in their journey to:

• Governing sustainability and ESG matters
• Taking a pathway towards sustainability and neutrality
• Financing the transition towards a more sustainable future
• Managing ESG-related risks and opportunities
• Reporting and disclosing against mandated and voluntary frameworks