Market factors such as resource scarcity and the need to mitigate climate change present an important opportunity for society. Growing demand for financing creates an opportunity for financial institutions (FIs) to expand product offerings to include sustainable finance.
Environmental and Social (E&S) risks to financial institutions stem from E&S issues related to their client’s/investee’s operations. Considering these risks in the transaction review process helps financial institutions reduce overall risk exposure.
Sustainability is central to economic growth. For the private sector, this represents greater environmental and social responsibility as well as a new landscape of business opportunity. The financial sector has a key role to play in delivering sustainable financial solutions.