Turn ESG into opportunities and adapt to regulations
Banks, insurance companies, and pension and investment funds are the main resources of external financing for businesses in Europe and Czech Republic, which is why the EU tasked them with supporting the European market during its transition to sustainability.
The European Commission, the European Banking Authority, and the European Central Bank already place specific demands and expectation on the entities within the financial market, and more regulations are underway.
We can help you make sense of the demands that are – or soon will be – placed on you. We’ll help you determine the path to meeting the external rules, like the EU Taxonomy. Together, we will set up your processes, rules, reporting, data requirements, and methodology. We will also evaluate your product portfolio and help you identify new opportunities.
How we can help
Business model and strategy
First, we’ll take a look at how you approach to ESG and compare it to current and future regulatory requirements, banks and financial institutions who are ESG leaders both in the Czech Republic and abroad, your investors, rating agencies, and other stakeholders. Then, we set up appropriate KPIs (key performance indicators) and KRIs (key risk indicators) and propose a suitable ESG strategy – your path towards sustainability and carbon neutrality, covering your products as well. We will help you improve or receive ESG ratings and identify quick wins that will allow you to grow and improve rapidly.
Non-financial reporting and regulatory reporting
A gap analysis will help us determine how ready your company is for the current and future regulatory requirements (EU Taxonomy, the NFRD and CSRD directives, EBA Pillar 3, TCFD/SASB/ISSB). We will review your current reporting processes, tools, and data, recommend suitable methods, and help you implement non-financial reporting.
We can also calculate your carbon footprint, including Scope 3 financed portfolio, and help you automate calculations and implementation of technical solutions.
Risk management
We will perform a gap analysis to assess how ready you are for the future requirements related to management of different risks (credit, market, operational) and set up your entire risk management system. We can also help you set up a suitable risk appetite, limits, and KRIs.
We will create a credit process that factors ESG in, create, setup, and implement and ESG questionnaire or a quantitative/qualitative score card and, last but not least, we will establish or review the climate risk management – both physical and transitional.
ESG products and opportunities
We will identify business opportunities and draft new products that are in line with your strategy and your client base. We’ll use the gap analysis to assess your company’s readiness for their implementation and make sure they meet the regulatory requirements. After all necessary analyses are performed, we will make sure they are properly brough into practice.
We can also help you find the best subsidy programs and help you submit your applications.
Financial products – loans and financing
Are you looking to expand and diversify your financial resources? We will help you issue green bonds and create a portfolio of green/sustainable or sustainability-linked loans, investments, and deposit products.
Data and infrastructure
We will review your data pool and compare it to current and future requirements posed by regulators, non-financial reporting, and the management who expects more efficiency in how the company is run and how the KPIs are evaluated.
We will measure your current and the expected carbon footprint according to your business plan, identifying areas that need improvement along the way.
Governance
We will perform an evaluation, compare you to the market leaders, and recommend and set up the best governance and control mechanisms, organizational structure, communication schemes, and training programs for your employees. We will also provide sustainability training for the leadership members responsible for ESG to increase regulatory competences (“fit and proper”).
