1、While financial institutions are increasingly integrating ESG factors into core processes,theres still a gap between aspirations and results.By Maria Teresa Tejada,Oren Salomon,and Michael KochanHow Financial Services Firms Are Wrestling with ESG Copyright 2023 Bain&Company,Inc.All rights reserved.1

2、How Financial Services Firms Are Wrestling with ESG IACPM|Bain&Company,Inc.At a Glance Bains new survey,together with the International Association of Credit Portfolio Managers(IACPM),of 55 global financial services firms details how banks and other financial institutions are responding to ESG press

3、ures from regulators,shareholders,and customers.Views differ on whether ESG pillars primarily represent downside risks to be managed or upside opportunities to be captured,with European respondents most bullish on the opportunities.While institutions are making progress,theyre hampered by a lack of

4、consensus on frameworks and methodologies,as well as unclear decision rights and different regulatory priorities among the regions.Four areas merit attention:aligning stakeholders on decarbonization,deciding transition finance priorities,defining strategies to address customer demand,and augmenting

5、climate-risk data analytics capabilities.For several years,pressure has grown on financial institutions to clarify their environmental,social,and governance(ESG)commitments and strategies.While their internal and external stakeholders do not always share the same agendas,calls have been mounting for

6、 institutions to play a more active role in supporting the transition of the economy away from fossil fuels.Many are already taking steps to do just that.But when it comes to devising and executing a longer-term strategy that responds to ESG imperatives,two perspectives have taken shape.The details