ESG Risk Management in Banks
Understanding climate, environmental, social and governance (ESG) risks is essential to banks’ overall risk management, and increasingly under focus from supervisory authorities. Management of ESG related risks as well as full integration of ESG-risks into business strategy, risk management frameworks and business models is one of Advisense’s core offerings, and one we hold unique experience in, given our long and market-leading risk modelling expertise. We create tailor-made solutions based on your company’s specific needs, ensuring compliance with upcoming regulatory expectations.
EBA Guidelines
GAP Analysis: Light and Full
Analysis on how far the bank has come in integrating ESG into their business strategies, risk management and business model by using Advisense’s Benchmark tool. Based on the ECB Guide on climate-related and environmental risks as well as EBA guidelines on the management of ESG risks.
Advisory on Implementation
Full implementation of the requirements in the EBA GL on the management of ESG risks in the bank’s operations. Based on the findings in the EBA GL GAP analysis. Including materiality assessment as part of ICAAP, updated risk framework and development of transition plans.
ESG Integration in Credit Risk Processes
Full regulatory GAP analysis and implementation of ESG risks into credit risk polices, routines and credit risk framework in accordance with GAP-analysis. Including ESG scorecards and metrics.
Portfolio Physical Climate and/or Transition Risk Analysis
Geographical and sector-based assessment of the inherent physical climate and/or transition risks in the loan and investment portfolios, along with recommended risk-mitigating actions.
ESG Integration in the Risk Management Framework
Strategic review of ESG integration in risk management framework, including risk appetites and risk policies.
Find out more about the ESG and Sustainability services we offer here.
Interested in how we can support your integration of sustainability into risk management? Let’s connect.
