ESG in Regulatory und Compliance

ESG - Environmental, Social, Governance - stands for major challenges, but also opportunities, that banks and insurance companies must address in order to become fit for the future. It encompasses aspects such as climate change and environmental protection, respect for human rights, employee diversity and sustainable corporate governance. Numerous regulations have been developed for all aspects in the meantime and it is a challenge not to lose track of them all.

The three letters E, S and G also stand for the new awareness of our time and a fundamental reorganisation of the business world. ESG contributes to a rethink and a new understanding of values. ESG has evolved from a risk and compliance issue to a strategic factor that - if properly considered and implemented - offers an opportunity for more growth, profitability and higher company value. The approach to sustainability must be fully disclosed and is an important reputational factor for companies.

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Our range of services

Our ESG solution in the area of Regulatory & Compliance for the financial sector (in particular banks, insurance companies, asset managers and payment service providers) implements the ESG requirements in corporate governance and reporting with the help of the following services:

ESG radar
The frequency with which new requirements on ESG risks are published demonstrates the strong focus of regulators and policymakers on the financial sector from various perspectives and leads to a sheer confusing amount of regulations and guidelines.

Our ESG Radar provides an updated overview of the latest changes so that you don't lose track and are always up to date.
- Overview of all ESG-relevant regulatory changes
- Sorting of daily updated information according to ESG relevance
- Option to additionally sort by affected sectors and other criteria, e.g. relevant standard setters
- Determination of the relevance and significance of individual innovations in the ESG environment for institutions
- Ensuring that all relevant ESG regulations in the company are fully addressed
- Creating the basis for efficient ESG implementation while utilising synergies
Implementation of the Supply Chain Act
The German Supply Chain Due Diligence Act (LkSG) came into force on 1 January 2023. It regulates corporate due diligence obligations in supply chains and, for the first time, legally stipulates the responsibility of companies, banks and insurance companies to comply with human rights within their business area and their supply chains.

The due diligence obligations of companies include
- Establish a risk management system and carry out a risk analysis;
- Adoption of a policy statement for the corporate human rights strategy;
- Anchoring preventive measures;
- taking immediate remedial action in the event of identified violations;
- Establishment of a complaints procedure;
- Documentation and reporting obligations for the fulfilment of due diligence obligations.
We bring specialist expertise and implementation experience from various projects:
- Procedure model for the efficient and rapid introduction of the requirements of the LkSG in regulated companies and GAP analysis tool
- Industry knowledge and market view through market survey/study on the implementation status of the law at selected financial services companies
- Early definition of a target organisation for the implementation of due diligence obligations with the involvement of numerous areas
- Conceptual solution for new procedures, e.g. risk analysis or reporting
ESG disclosure
The regulatory disclosure requirements of the CRR on environmental, social and governance risks have obliged large capital market-oriented institutions to disclose extensive quantitative information on transition and mitigation measures as well as physical risks, supplemented by qualitative information on ESG risks in business strategy, Risk management and corporate governance since the end of 2022. CRR III is expected to be extended to all banks from 2025.

Our range of services on this topic:
- Procedure model for the efficient and rapid introduction of ESG requirements in credit institutions as well as GAP analysis between ESG programme and ESG disclosure requirements, in particular in the areas of data supply, processes and methods
- Readiness assessment for the new requirements of CRR III
- Organisational positioning of the future disclosure requirements
- Identification of the interfaces between the ESG requirements of Pillar III, CSRD, EU Taxonomy, LkSG and the planned EU Due Diligence Directive (CSDDD)
Training courses and workshops
ESG regulation is characterised by a large number of very complex requirements that are also subject to a dynamic process of further development. Both the relevant specialist and IT departments as well as managers must keep pace with these developments.

That is why we offer
- Focussed workshops on the requirements and current topics
- Training for your committees, stakeholders and employees
- Continuous further development and up-to-date information for you