The goal of this whitepaper is to create an overview of the topic complex ESG with the focus on sustainability and to derive recommendations for action for banks with the help of scientific studies, supervisory leaflets and further publications.
The Whitepaper is separated into the sections “Introduction ESG”, “Bafin & TCFD” and “Recommendations for action & Examples”.
Michael Dietrich
Senior Consultant
michael.dietrich@targens.de
+49 160 8861560
Patricia Weißhaar
Managing Director
patricia.weisshaar@targens.de
+49 175 1985444
Introduction ESG
In this part of the whitepaper the term ESG is defined. Furthermore, the criteria that lead up to this term are explained in detail.
In the section „Development ESG“ of the whitepaper we will show that there are scientific publications on the topic of sustainability that are already hundreds of years old. In the course of the “Introduction ESG” the Paris climate treaty and the recommendations of the TCFD are focused much more. After that, we deal with the current state of legal requirements on a European and national level.
Requirements supervisory authorities
As an essential source of this section, we use the leaflet of BaFin for the handling of sustainability risks and the recommendations of the TCFD.
As an introduction, we will look at the explanations as well as the goals of the leaflet, in order to derive concrete recommendations for actions for the business centers compliance, risk management and report system in the course. Within risk management, we put special emphasis on the stress tests and scenario analyses.
Recommendations for action & examples
This section refers to the implications and the need for action for banks in their respective business areas. Furthermore, some examples for the implication of different methods are shown.
At the end of the Whitepaper, we give an outlook. From the viewpoint of the financial sector, it is indispensable that it takes part in the dialog with the BaFin intensively and actively in the future to discuss how to deal with risks of sustainability.
