Climate Change and Sustainability
What Gets Measured Gets Financed
Veronica Chau
BCG's Veronica Chau joins Maria Kozloski of the Rockefeller Foundation to discuss climate finance and the work that remains to ensure that governments, investors, and companies are making the greatest possible impact.
To address the growing financial materiality of environmental and social topics, financial institutions are building new capabilities to pursue emerging financing opportunities and better manage ESG-related risks. This shift toward sustainable finance and investing is quickly becoming a source of competitive advantage.
At BCG, we work with financial institutions to develop enterprise-wide strategies and operating models for delivering on sustainable finance and investing ambitions. We help them translate their net-zero commitments into action. We also work with corporate and investment banks to more effectively pursue new sustainable finance opportunities. What’s more, we help asset and wealth managers to unlock the value of their sustainable investing capabilities, and to do so in a way that avoids greenwashing.
BCG’s Approach to Sustainable Finance and Investing
BCG helps banks, asset managers, and other financial institutions create competitive advantage in sustainable finance and investing. Here are just some of the ways we help clients:
- Unlock business value through enterprise-wide sustainable investment strategies.
- Set ESG and sustainable finance targets, conduct benchmarking and scenario planning, and implement ESG and sustainable finance roadmaps.
- Develop social and sustainable finance frameworks and sustainable finance strategies.
- Identify and pursue high-impact sustainable investing opportunities that capture market share across environmental and social categories.
- Set net-zero targets for greenhouse gas emissions across portfolios and financial activities using CO2 FI, BCG’s proprietary measurement tool for financial institutions.
- Unlock the potential of carbon markets.
- Build forward-thinking ESG data and reporting capabilities, and effectively respond to demands from regulators, standard setters, and other stakeholders.
- Identify and quantify the relationship between valuation multiples and ESG scores.
- Establish a target operating model to deliver on sustainable finance and investing ambitions.
- Tailor sustainable finance solutions to corporations to help CFOs steer the sustainability journey and adapt to sustainable investing trends.
Our Clients’ Success in Sustainable Finance and Investing
A global bank set an ambition to become a leader in sustainable finance and investing by 2025. BCG identified and sized commercial opportunities, developed a sustainable finance framework and strategy, and created a two-year roadmap for execution. The bank doubled the size of its original sustainable finance and investing ambition and is on track to become a market leader in sustainability.
One of the biggest asset management companies in the world set a three-year goal to integrate ESG into all of its investment decisions. BCG identified the capabilities needed to become an ESG leader, designed a methodology framework for net zero, and set up a project management office to run 12 workstreams. The company translated its ESG ambitions into concrete, quantified ESG commitments and implemented a set of robust net-zero targets.
A global bank committed to reducing emissions from its lending and investment portfolios to achieve net zero by 2050. BCG established climate transition frameworks for high-emitting sectors, developed a methodology for facilitated emissions, and shaped the bank’s roadmap to net zero. The bank announced an ambitious net-zero strategy, including commitments to reduce financed and facilitated emissions, and is now a leader in climate and sustainability.
Our Insights on Sustainable Finance and Investing
Interview
A conversation with BCG’s Amine Benayad on the role of financial institutions in solving the climate transition and just transition.
Article
The imperative for adaptation and resilience investment has always been clear. Now, finally, so is the business case.
Article
The field of climate finance has come a long way in recent years, but questions remain about the market for investment in climate mitigation, adaptation, and resilience—even as demand for capital continues to grow.
Video
Agents of Change
Banks might have, more than any other industry, the opportunity to drive social impact on a massive scale. What will it take to unlock these opportunities? BCG’s Doug Beal joins Tom Hall, global head of social impact and philanthropy at UBS, to discuss.
Video
Doing Good Is Good for Business
BCG’s Greg Fischer discusses how organizations can invest for impact to create value—and at the same time, create a better world.
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Video
BCG’s Veronica Chau discusses a playbook of moves to mobilize big money and transform today's climate financing challenges into opportunities.
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Meet Our Sustainable Finance Consulting Leadership Team
BCG’s sustainable finance consulting team has deep expertise in sustainable investing and sustainable and social finance. Here are some of our experts in sustainable investing consulting.
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