ESG Transforming How Banks Do Business Environm

ESG Transforming How Banks Do Business

Environmental, social and governance (ESG) standards are becoming necessary in different fields of business, including banking, as more investors and consumers become more aware of the environmental impact of businesses, how they treat their communities and employees, and their stance on social issues.

This comes after 76% of consumers revealed that they would terminate their relationship with a business that treated its environment, employees and surrounding community poorly. ESG bank solutions improve the positive impact of businesses and allow businesses to better manage risks while improving their positive impact.

So, how does demand from the market and consumers drive ESG in banking?

A growing number of customers want to do business with companies that align with their values, which include businesses that operate more sustainably and ethically. This has led to added interest in companies that are focused on decreasing their greenhouse-gas emissions emitted either directly or indirectly from their operational activities, such as employees commuting and business travel. Consumers are also interested in socially responsible investing and how banking tools could assist in tracking one’s environmental impact.

It should be noted, however, that operating systems in banks focus primarily on customer life-cycle management, transactions and compliance activities, which makes it hard to execute modern ESG initiatives and manage their data.

How can obstacles be overcome to strengthen ESG programs?

Integrating data on emissions into existing systems to track and measure carbon emitted across a business’ supply chain may be hard. It doesn’t help that evolving rules under ESG make it hard for banks to track different sets of data in order to meet reporting requirements.

Improving ESG management for banks is necessary, with poor oversight causing issues that undermine public trust as well as financial losses. Banks strengthening their ESG programs is also a good move for their resilience and long-term financial health.

Following the implementation of an effective ESG data strategy, banks can easily enact better risk management while also meeting consumer and investor ESG expectations.

What ESG solutions can banks implement to drive impact?

Coming up with a reliable ESG data strategy can assist banks in increasing accountability and transparency. By developing a comprehensive approach to collection of data and reporting, banks can better realign themselves with their ESG priorities.

Banks can also ensure that their physical assets are more sustainable by collaborating with technology companies to achieve their goals on energy usage. Additionally, embracing a multifaceted strategy may enable banks to advance their ESG objectives while developing more sustainable operations.

In the same way, entities in the mining industry, such as Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF), also require a unique set of tools tailored to advance their interests around environmental, sustainability and governance issues.

NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF

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