Current events show: Short-term financial success is often short-sighted. Sustainable business pays off - for the environment, society, image and avoidance of risks. The United Nations and the Paris Agreement have set clear guidelines for the transition to a sustainable economy. There is no way around these if we want to secure our prosperity in the long term. This transformation offers many opportunities for growth, competitiveness, innovation, social stability and a environment. The financial industry has a central role to play in this.Find out more!
An important building block of the EU action plan is the taxonomy, a classification system with sustainable criteria for economic activities and investments. This increases transparency through disclosure requirements at the financial product and company level. The SFDR Regulation (Sustainability-related disclosures in the financial services sector) harmonized these rules for financial market participants and advisors in 2019, specifying sustainability risks and adverse impacts that must be mentioned in processes. The regulation also regulates the required information on financial products. It was applied in two stages in 2021 and 2022. The EU Council adopted the draft Taxonomy Regulation on April 15, 2020, and the EU Parliament has since approved it. Further initiatives are being planned.
In 2018, the EU Commission presented the Financing Sustainable Growth action plan, based on the Paris Climate Agreement and the UN Agenda 2030. The aim is to steer investments into a sustainable economy. Sustainability is increasingly being integrated into risk management and sustainable financial products are becoming more transparent. In the financial markets, investors increasingly prefer sustainable products. Environmental, social and governance (ESG) criteria influence risks, returns and the value of investments. Sustainable business and the management of sustainability risks are key elements of successful business strategies.
ESG criteria should already be comprehensively integrated into the entire process of investment decisions and financial advice. Banks and financial institutions face a significant challenge as adjustments are required in many areas. Sustainable Finance is becoming a cross-cutting regulatory issue that requires a holistic approach: From business and risk strategy to customer and investment portfolios, processes and IT systems, ESG is becoming increasingly significant. Since the end of 2021, BaFin has already been reviewing whether sustainability risks are adequately taken into account in investment and business decisions. This underscores the urgency of addressing this issue comprehensively.
Targeted and regulatory
strongly automated processes.
reusable high-tech components
We are analyzing how the new requirements affect the existing process and IT landscape
We define target processes, create domain-specific and IT concepts, ensuring that your processes run smoothly and cost-effectively
We develop the suitable solution for you, select the appropriate platform, and implement it for you
We link sustainability risks to your GRC domains, transparently integrate them within the Three-Lines-of-Defense model, and establish a control process
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