Banking Sustainability Management

The integration of banking sustainability management systems and practices brings tangible benefits, including new lines of business, new clients, greater access to financing, greater shareholder value, and improved reputation and goodwill. Banks in emerging markets have increased their awareness about the risks and potential benefits associated with social and environmental issues.

Bring on board and support dedicated managers and/or social and environmental departments, staffed by experts with appropriate academic background and experience, and responsible for implementing social and environmental controls. We systematically integrate social and environmental procedures for risk management into an overall risk management systems. Sustainability risks vary by company size and industry, but are potentially present in any organization.

At Ecova UK, we believe that a sustainabiity management system brings the following benefits:

❚ Reduces the risk of project failure,

❚ Helps avoid environmental liabilities,

❚ Improves the bank’s image,

❚ Provides competitive advantage at no extra cost,

❚ Opens up new business opportunities,

❚ Allows the bank to do business in accordance with local policies, procedures, corporate principles, and environmental legislation.

Improved management of sustainability issues help banks generate a stronger portfolio with projects that achieved:

❚ Cost savings through such means as process efficiency and waste minimization,

❚ Reduction of polluting emissions,

❚ Benefits from switching to raw materials or processes with lower environmental impacts,

❚ Reduction in insurance premiums, permit fees, or other costs because of improved environmental performance,

❚ Improved lost time accident record and/or number of injuries,

❚ Positive attention from the media and NGOs,

❚ Citations and awards.

Sustainability standards have become a competitiveness issue for suppliers. Banks well-acquainted with the specificity of the sustainable supplier market and offering value-adding services to improve sustainability performance can extend their market reach.

Financial institutions can enjoy the reputation benefits of supporting businesses that have good environmental, social, and governance standards, which in turn generate increased brand value among policymakers, shareholders, and customers.