ESG implementation study: Europe’s banks under the microscope

Between ecological ambition and economic reality

The need for Europe’s banks to take action on ESG is obvious. They have recognized that the consideration of environmental, social and governance factors – known as ESG factors – is now just as important for their reputation as stable business figures.

However, our survey of 36 institutions also reveals that most banks are cautious when assessing their ESG expertise in the areas of competitive positioning, net-zero emissions, risk and data management, and business opportunities. Most of the respondents approach the reduction of emissions to net zero with different targets, do not yet take sufficient account of ESG-related risks, consider data management to be a major challenge due to the lack of availability of ESG data, and leave potential in selling ESG products and services untapped.

According to zeb’s assessment, the majority of the institutions are at the first of three levels in these key ESG fields of action. To achieve full “ESG maturity”, banks need to focus particularly on improving their ESG data literacy, firmly integrate ESG factors into management processes as well as governance structures, and fully involve all stakeholders in the further ESG transformation – true to the motto “Inform rather than preach”, banks should step up and assume their ESG guiding role.

Our detailed white paper on the ESG implementation study will be published in July (initially only in German).