Green financing: are european banks and insurers contributing?

ESG integration by sector

Publication :February 2015

The analysis of the public communication of the 32 largest banking and insurance groups led to the following observations. Awareness of the role of the financial sector in the transition to a low-carbon economy has grown since 2012, and companies are increasingly conducting environmental risk analysis. But these practices are more akin to risk management policies – initiated to limit exposure to the most controversial projects – than to real reallocation strategies contributing to the transition to a low-carbon economy.

  • Information on green financing is developing but focuses more on image than on business activities.
  • Information on environmental and social risk management policies is becoming more structured.
  • Reporting on the environmental impact of financed products remains rudimentary.
  • NGOs are putting more pressure on the financial sector.
  • Rating agencies focus primarily on the risk management practices of banks and insurers.