Translating ESG Strategy into Your Financial Service Firm’s Ecosystem

GDS’ Meet the Boss Roundtables connect 6 C-level executives in closed-door conversations around challenges in their industries. In this RoundTable RoundUp, we will explore the challenges around adopting ESG.?

Over the past few years, we’ve been forced to assess how?Environmental, Social, and Governance?(ESG)?issues affect?operations in?big business more readily. For financial organizations,?in particular,?ESG has?fast become a critical concern?and sits as the backbone in?business strategies?as a result.?Increasingly, we need to?ensure that?these?firms?not only?comply with reporting requirements and investor information but also maintain customer and employee loyalty.?

The pressure?for financial service firms to adopt ESG?has mounted?to such an extent that there?is no better?time to make wise digital investments?that ensure?a greener future. These digital investments can create efficiencies in processes,?help?respond to employee and customer demands, and manage?risk and regulatory obligations.?However, many businesses are still grappling with how to comply with disclosure requirements?whilst also?innovating?to accelerate?their?environmental and social?responsibilities. So?how can?you?be truly successful in this space??

For many companies,?the ESG requirements of different countries presents a challenge as they?are being?given conflicting requirements across global operations.?Companies need to know what is?required?and figure out how to address the constantly changing and evolving regulations. This is a challenge for leaders as standards?have not?been set yet and no one knows?who to trust on the subject. Although businesses want to see consistency and standardisation soon, leaders cannot wait for regulations to?be implemented?to?start?gathering and reporting information on focus areas.?They must create a more structured approach?to?monitor for change and ensure?a?responsive change in ESG reporting and management.?

Everything around ESG will need access to reliable data for organizations to mark whether they are meeting standards and to be able to deliver the right ESG information to employees, clients,?customers,?and investors. But a lot of companies have?different parts?of ESG data scattered throughout operations and corporate departments. Rarely, if ever, is this data managed in a standardized?or unified database, and?analyzing?this data to create reports requires time just to?locate.?

Failure to?comply with?ESG does pose?sizeable?risk and companies have begun to incorporate it into their enterprise risk management?as a result. Companies are now not only having to report on their impact?on?the environment but also focus on the environments impact on?their business.?Naturally, this will lead to changes in?a?business's?plans and?objectives.?ESG?risks?will?ultimately?effect?partner?decisions?and how?you are seen by your contemporaries and members of the public,?it is?critical that we keep pace with the changes for this reason.??

GDS Meet the Boss Roundtables accelerate the discussions that matter. To be part of an upcoming roundtable discussion between the senior leaders that are driving change and addressing the issues that face your industry today,?take a look?at our upcoming Meet the Boss Event.?