Albert Welgraven
Financial Services Industry Director Western Europe at Microsoft
The connection between sustainability and finance is not new, but it’s one that is gathering pace. Capital allocation is increasingly directed towards sustainable investment projects in financial services, with Bloomberg reporting [1] that global socially responsible investments totalled over $30 trillion in 2019.
Today’s customers also expect that companies they use not only act responsibly, but proactively pursue financial activities that make a positive impact on the world. Meanwhile, regulators are shaping legislation to advance sustainable finance, for example through the EU Sustainable Finance Acts & Directives stream of the European Green Deal, the EBA Action Plan on Sustainable Finance, the UN PSI and the Net-Zero Banking Alliance.
This is impacting investors too, who are broadening their investment criteria from a narrow focus on returns to a broader prioritization of sustainability and social aspects like carbon emissions, diversity and tax transparency. In response to this, companies within the financial service sector are realizing that they need to start offering investment opportunities focus on environmental, social and governance (ESG) factors.
All these dimensions drive sustainable transformation and presents new opportunities for financial service providers. And with the right technology, all financial businesses can seize them.
There are a number of reasons for the increasing focus on sustainable finance. Firstly, financial sector customers are now expecting to be offered sustainable investment products. Secondly, many green investment projects require substantial capital injections: EY has identified over 1000 ‘shovel-ready’ projects within the EU, which require around €200 billion of public and private investments and have the potential to create substantial sustainable value.
We are seeing that both banks and insurers are facing significant challenges when planning their ESG action, including:
All these challenges make knowing what to do now, next and beyond an obstacle for many financial organizations.
The Sustainable Transformation Landscape has been developed by Microsoft to provide a framework to support businesses in their efforts to create a better tomorrow.
It provides industry-specific guidance on how to take the next step forward, detailing what to consider now, next and beyond across 3 pillars of the sustainable business model: sustainable platform, sustainable collaboration and sustainable ecosystem.
Start tapping into sustainable finance. Download the Sustainable Transformation Landscape today:
Sources
[1] Bloomberg
Sustainable futures: Inspiring stories of transformation across industries
Over the past decade, the sustainability agenda has become an imperative. With the EU and national governments requiring ever more stringent reporting against key sustainability measurables, every organization in Europe now has a clear mandate to address. The bad news? Most organizations are still using outdated technology to measure their progress. This makes it increasingly […]
Semina Vagiakou
Integrated Marketing Manager | Microsoft Western Europe
Sustainable transformation in the energy sector: now, next and beyond
Sustainability is one of the most urgent challenges facing the modern world. It is everyone’s responsibility, and the future success of ours and other species depends on the way that we rise – collectively and as individuals – to meet that challenge. Every industry is adapting in its own way to changes in the expectations […]
Luis Morencos
Energy Industry Executive, Microsoft, Western Europe
