financial services
Common sustainability challenges for FS companies
Regulation
Our larger FS clients are often at the vanguard of changing sustainability regulation and legislation - which raises the bar for the wider industry. Having a strategic approach to disclosure is key but it's easy to fall into catch-up mode.
Scope 3
All companies have the challenge of trying to measure and reduce their upstream (supply chain) emissions but most FS companies additionally have the challenge of financed emissions, often 90%+ of their total greenhouse gas emissions.
Client demand
Reducing financed emissions requires customer appetite and engagement. Balancing the need for product innovation with society's expectations still for a 'green premium' and no corresponding regulatory capital allowances is a huge challenge.
Integration
Although it's improving, for many years, sustainability was seen as separate to the core strategy and day-to-day operations of an FS company. The reality is it needs to be fully integrated - from strategy to credit decisioning - or it will be at a costly standstill.
With 35years+ experience in leading strategy and sustainability functions at large UK banks, Perigon can help. Much of our work with financial services is centered on the following areas.
materiality assessments
Key to complying with incoming ISSB (UK) or CSRD (Europe) requirements is understanding your 'double materiality'. We specialise in thorough (CSRD-compliant) yet pragmatic assessments that incorporate your lending books and emerging focus areas like nature. We also believe that a clear understanding of materiality is the best possible foundation for an effective strategy and action plan.
integrated strategy
We challenge you to find any sustainability consultants with more experience of financial services strategy than we have! Our absolute bread and butter is developing integrated, sustainable strategies where commercial and sustainability goals are embedded together. Guided by this single framework, implementation is then vastly more efficient and your corporate narrative vastly more straightforward. And the product / customer strategy starts to embed sustainability.
climate and nature impact of lending
90%+ of a typical FS firm's impact will be through its lending and investment activities. While our capabilities in climate and nature evaluation and measurement are also relevant for your direct operations and supply chains, we importantly have the additional expertise of assessing your balance sheet. From this we develop effective baselines (e.g. using PCAF methodology), transition plans and science-aligned targets.
navigating disclosure
Often early-movers with incoming regulation and legislation, we help our financial services clients navigate this new ground with pragmatism and purpose. Whether it's enhancing existing TCFD disclosures ready for incoming ISSB-based legislation, developing your inaugural Transition Plan, starting to consider TNFD-aligned reporting or disclosing against the ESRS framework to meet European CSRD requirements, we can help.
