Sustainable finance seeks to improve the contribution of finance to sustainable and inclusive growth as well as the mitigation of climate change.
Sustainable finance will improve the contribution to sustainable and inclusive growth.
ESG (environmental, social and governance) factors in investment decision-making have become mainstream. For financial institutions, from asset managers to banks and pension funds, ESG plays a key role in avoiding significant harm and contributing to sustainable development through thematic and impact investment. At the same time, increasing evidence points to a clear correlation between ESG performance and financial performance.
Sustainable finance has two imperatives:
Changes in societal expectations of the financial sector are driving demand for ESG and sustainable finance. Challenges faced by investors today include increased scrutiny on ESG reporting, emerging EU regulation on sustainable finance, lack of standardisation and a shift in the risk landscape to a more long-term perspective.
KPMG can assist you with:
Read more about ESG and Sustainable Finance: