Mobiquity+2023全球银行业可持续基准

Aglobalbenchmarkfor

sustainablebanking2023June20231OVERVIEWTable

ofcontentsCHAPTER

1Foreword:Peter-Janvande

Venn,VP

Global

Digital

Banking,

Mobiquity3CHAPTER

2Literature

Review:

AdiGaskell,ForbesContributor47CHAPTER

3Infographicof

main

findingsCHAPTER

4Summary

of

the

research19222324CHAPTER

5MethodologyCHAPTER

6HowMobiquity

can

helpCONTACTGetin

touch2CHAPTER

1ForewordPeter-Janvande

Venn,VPGlobalDigitalBanking,MobiquityWelcometo

thethirdeditionofour“GlobalBenchmarkforSustainableBankingReport”thatfurtherexploresthesentimentofbankingexecutivesanotheryear

on,to

compareandcontrastsustainableattitudesandbehavioursacrosstheglobalbankingcommunity.Thisyear’s

reportshowsthatsustainability/ESGisforcedsomewhatdowntheagendadueto

thepresenteconomicclimate.Wherelastyear’s

reportshowedthatbankshadmadesignificantprogressinelevatingtheirsustainabilitystrategies,ourresearchshowsthatthepreviousworkisnowbeingsloweddown.Themacroeconomicheadwindshave

forcedbanksto

focusonactivitiesthatwilldeliverclear,immediatereturns.Fromboardlevel

to

front-lineteams,bankshave

beenconcentratingonkeepingtheirbottomlineshealthy,

forcingsustainabilityto

take

abackseat.Whilstit’s

understandablethatbanksarefeelingunderpressure,there’sariskbeingtoomuchfocusedontheirshorttermchallengeswillleadto

themmissingoutonthelong-termbenefitsthatsustainabilitybrings.Fromtheresearchwe

seethatdigitaltechnologycanalsobeusedto

supportESGandtransparencyinthebankingsectorand2in5(40%)C-suitessurveyed

saidtechnologycandothisby

implementingdigitaltoolsandplatformsto

collect,analyse,andreportESGdataandmetricsinastandardisedandconsistentmanner.Theyalsosaidtechnologycanbeusedto

supportthisby

developingblockchain-basedsolutionstoimprove

transparencyandtraceabilityinsupplychains,particularlyforindustrieswithhighESGrisks.Thetop3ofemergingtechnologiesanddigitaltoolingC-suitessurveyed

saidtheirbankiscurrentlyengagingwithin2023:1.

Cybersecuritytechnologies2.

MachineLearning(MI)andArtificialIntelligence(AI)3.

ChatGPTIncorporatingdigitaltechnologiesto

promotesustainabilityiscrucialforensuringthelong-termviabilityofbusinesseswithintheevolvingbankinglandscape.Thebankofthefuturemustnotonlystriveto

deliveracustomer-centricdigitalbankingexperiencethatseamlesslyintegratesphysicalanddigitalchannelsbutalsopositionitselfasafacilitatorofdigitallifestyles,drivenby

anactiveESGcultureto

attractandretainaloyal

customerbase.Beingat

theforefrontofESGpracticeswillprovideacompetitiveadvantage,astheupcominggenerationsareincreasinglydrawnto

brandsthatserveaclearpurpose.Tosecureafinanciallysustainablefuture,banksmustproactivelyembracethispurpose-drivenapproachfromtheearliestpossiblestage.3CHAPTER

2LiteraturereviewAdiGaskell,ForbesContributorWhenJohnKerry,

theU.S.SpecialEnvoy

forClimate,recently

explainedthattheworldwas“way

offtrack”to

maintainingthepledgeto

keep

theriseinglobaltemperaturesto

1.5degreesCelsiusthatiswidelyacceptedasneededto

keep

climatechangeundercontrol.Kerryexplainedthatto

keep

thataspirationalivewillrequirereductionsofemissionsofupto

45%by

2030,butratherthanpursuingthatpath,societyisinsteadheadingtoward

ariseofbetween2.5and3degrees.Whilesectorslike

manufacturingcontinuetodominateintermsofenergyconsumption,thefinanceindustrycannonethelessplayacrucialroleincurbingemissions.Thelacklusterprogresscomesdespitedata

fromKPMGshowingthatnearly80%ofcompaniesgloballyarecurrentlyreportingsomekindofsustainabilitymetrics,withthisrisingto

practicallyallcompaniesincountrieslike

theUK.Thisapparentdichotomyispartlyexplainedby

arecentreport

fromtheNewClimateInstituteincollaborationwithCarbonMarket

Watch.Talk

vsactionThereportanalysestheclimatestrategiesofaround25globalcompanies,withaparticularfocusonwhetherthecompaniestrackanddisclosuretheiremissions,setemissionreductiontargets,activelyreducetheiremissions,andtakeresponsibilityforunabatedemissionsviaoffsettingorotherclimatecontributions.Thereportalsoanalysesthetransparencyofcompaniesacrosseachofthefourareas.Betweenthem,the25companiesproducetheequivalentof5%ofglobalgreenhousegasemissions,andthereportfindsthatwhileallofthecompanieshadmadepledgestoreducetheircarbonfootprint,thosepledgeswereoftenambiguousandtheactualconcretecommitmentswereextremelylimited.Thereportfoundthatall25companiescommittedtosomeformofzero-emission,net-zero,orcarbon-neutraltargets.However,

itisnotablethatonlythreeofthesecompanies,namelyMaersk,Vodafone,andDeutscheTelekom,

haveshownaclearanddecisivecommitmenttodeepdecarbonisationbyaimingtoreduceover90%oftheirfullvaluechainemissionsbytheirrespectivenet-zeroandzero-emissiontargetyears.Regrettably,atleastfivecompanieshavepledgedtoreducetheiremissionsbylessthan15%,oftenbyexcludingupstreamordownstreamemissions.Amongthe13companiesthathaveprovidedspecificdetailsontheirheadlinenet-zerocommitments,theiraveragefullvaluechainemissionreductiontargetfrom2019standsatonly40%.Meanwhile,theremaining12companieshavemadeheadlinepledgeswithoutcommittingtoanyspecificemissionreductiontargetsfortheirrespectivetargetyears.4Collectively,the25companiesunderassessmenthavecommittedtoreducinglessthan20%oftheir2.7GtCO2eemissionfootprintbytheirrespectiveheadlinetargetyears.Whileall25companieshavetakenimportantstepstowardsdecarbonisation,thelackofcomprehensiveandaggressiveemissionreductiontargetscouldhinderprogresstowardasustainablefuture.asmostoftheirrespondentsthoughtthatinvestingindigitaltechnologymightactuallyresultintheirorganisation’scarbonfootprintincreasingratherthandecreasing.Thetrueenvironmentalimpactofdatacentersremainsuncertain,creatingasignificantobstaclefortheindustry,electricityproviders,andpolicymakerstomakewell-informeddecisionsonthematter.

However,

whatisirrefutableisthesubstantialimpacttheindustryhasalreadymadeandthelikelihoodofitworseningastheexponentialgrowthofdataanddigitalservicespersists.Making

meaningful

progressWhileanyamountofprogressiswelcome,thereremainsasubstantialopportunityforcompaniestoadoptmoreambitiousmeasurestoreducetheirclimateimpact,particularlywhenitcomestoaddressingtheirupstreamanddownstreamemissions,commonlyreferredtoasscope3emissions.The25companiesunderreviewhaveanaverageof87%oftheirtotalemissionsattributabletoscope3emissions,butonlyeightofthemhavedisclosedamoderatelevelofdetailregardingtheirplanstoaddresstheseemissions.As

dirty

as

oilThenotionthat“dataisthenewoil”hasfueledthedrivetoaccumulateasmuchdataaspossible,despitethefactthatmostorganisationsonlyutiliseasmallfractionoftheirdata.Infact,avastmajorityofdataismerenoiseratherthanusefulinformation,resultinginnotonlyoperationalcostsbutalsosignificantenvironmentalandfinancialexpensesassociatedwithstoringexcessiveamountsofdata.To

demonstratetheircommitmenttoclimateleadership,theauthorsarguethatcompaniesmustprioritiseclimatechangeobjectivesandactivelyengageinconstructivedialoguestosharebestpractices.Bydoingso,theybelievecompaniessubstantiallyenhancetheiruptakeofambitiousmeasuresthatwilleffectivelyreducetheirenvironmentalfootprintandmitigateclimatechangerisks.Thiscouldinvolveincreasinginvestmentinrenewableenergysources,exploringinnovativesupplychainsolutions,andcollaboratingwithstakeholderstodrivecollectiveactiontowardasustainablefuture.MikeBerners-Lee’sbookHow

Bad

Are

Bananas?

The

CarbonFootprint

of

Everything

popularisedthisissue,highlightingthatouryearlyemailusagegeneratesupto40kilogramsofCO2,equivalenttodrivingasmallpetrolcarapproximately200kilometers.Astheworldbecomesincreasinglyreliantondigitalservices,itiscrucialtoaddresstheenvironmentalimpactofdatacentersandfindwaystominimisetheircarbonfootprint.ThingsgetsimilarlymurkywhenwelookatAIandmachinelearningwhichcontinuestoactasthefocalpointofmanydigitalinvestments.Forinstance,research

fromCarnegieMellonUniversityshowsthattrainingastandardnaturallanguageprocessing(NLP)modelproducesanestimated626,155lbsofcarbondioxideemissions,whichisroughly5timesthatproducedbyacaroveritslifetime.Itisespeciallyimportantthatfirmsareabletomakemoresubstantialprogressintermsofsourcingrenewableelectricity,especiallyasdigitaltransformationhasbeencited

asakeyfactorinbecomingmoresustainable.Indeed,asurvey

fromcloudtechnologycompanyPureStoragefoundthat86%ofsustainabilitymanagersbelievethattechnologyplaysacrucialroleinbecomingmoresustainable.Generating

emissionsDigital

driversThishasbecomeevenmoreproblematicwiththerelease,andsubsequenthype,surroundinggenerativeAImodels,suchasChatGPT.

EstimatessuggestthatChatGPTemits

8.4tonsofcarbondioxideperyear,

morethandoubletheamountgeneratedbyanindividual,whichisaround4tonsannually.However,

thepreciseemissionsdependonthepowersourceusedtorunthedatacenters-coalornaturalgas-firedplantsresultinfargreateremissionsthansolar,

wind,orhydroelectricpower.

Assuch,it’s

challengingtoprovideexactfigures.Suchtransformationeffortsareproblematicinanumberofways,however.

Firstly,

whileinvestmentsindigitaltransformationareundoubtedlyvaluable,it’s

amistaketosimplyassumetheactofgoingdigitalisinherentlygreenerandthereforeitallowsorganisationstoalsoputatickinthesustainabilitybox.Suchcynical“doubleaccounting”underpinsmanyoftheaccusationsofgreenwashingthatcontinuetoblightorganisations.Indeed,thePureStoragedatashowsthatitiscrucialthatanydigitalinvestmentsaremadeinasustainableway,

notleastArecentstudy

fromtheUniversityofCalifornia,Riverside,highlightsthesignificantwaterfootprintofAImodelssuchas5ChatGPT-3

and4.DuringGPT-3’s

traininginMicrosoft’sdatacenters,approximately700,000litersoffreshwaterwereused-equivalenttotheamountrequiredtoproduce370BMWcarsor320Tesla

vehicles.However,

suchapproachesareill-suitedtoindividualoffsettingclaimsduetotheprecariousnessofbiologicalcarbonstorage.Forinstance,theactofcuttingdownandburningforestscouldpotentiallyundoanycarbonstorage.Moreover,

giventhepressingneedtocurbemissionsandboostcarbonstorage,theemphasisshouldnotbeonchoosingbetweenthetwobutratheronsimultaneouslyadvancingbothobjectivesonaglobalscale.Theintensivetrainingprocessgeneratesavastamountofheat,necessitatingastaggeringquantityoffreshwatertoregulatetemperaturesandcoolthemachinery.Furthermore,theinferenceprocessbywhichChatGPTrespondstoqueriesorproducestext,alsoconsumesasignificantamountofwater.Forasimpleconversationof20-50questions,thewaterusedisequivalenttoa500mlbottle,highlightingthesubstantialtotalwaterfootprintforinferencegiventhemodel’s

billionsofusers.Driving

the

changeAttheHarvarddiscussion,KerrysoundedacautiousnoteofoptimismthatcompaniesarebeginningtograsptheimportanceoftacklingclimatechangeandensuringthattheiroperationsareNetZeroasquicklyaspossible.Whileeffortsareunderwaytotryandmakethesectormoresustainable,itrunstheriskofinvokingJevon’s

Paradox,withanyimprovementsinenergyefficiencyandsustainabilitymorethanoffsetbythehugeincreasesinusage.What’s

more,theanalysisbytheNewClimateInstituteurgescautionwhenitcomestotheenergyefficiencyofon-premiseITsolutions.“Ithinknow,

giventhedecisionsmadebyFordMotorCo.,GeneralMotors—bybigcorporationsGoogle,Apple,SalesForce,FedEx—thesecompaniesaresignedup,they’reonboard,theirCEOsunderstandwhat’s

happening,”hesaid.Tackling

thechallengeofclimatechangehingesoncreativebreakthroughs,anditiscrucialthatcompaniestakeacentralroleindevisingandimplementinginnovativesolutionsforthoroughdecarbonisation.TheseeffortsarebeingheavilybackedbythelikesofthestimuluspackageintroducedbytheBidenadministration.Dubious

effortsThevastmajorityofcompaniesevaluatedinthereportrelyonunbundledrenewableenergycertificates(RECs)tobolstertheirclaimsofminimalornegligibleclimateimpact.Essentially,thesecompaniesdrawelectricityfromtheirlocal,regional,ornationalgridandadditionallyacquirecertificatesfromrenewableenergyproducers,oftenlocatedindisparatelocations.Despitethesignificantlimitationsofthisapproach,companiesemployRECstoassertareductionintheirelectricity-relatedemissions.However,

thereremainsanurgentneedtohastenprogressinthisarena.Assuch,corporationsmustbracethemselvesforrigorousinspectiontoensurethattheirpromisesandassertionsaregenuinelycredible.Anyfallaciousclaimsmustbemetwithaccountabilityandconsequences.Thereportalsofoundthatmanycompaniesutiliseoffsettingtotryand“neutralise”theircarbonemissions.Two-thirds

ofthecompaniesanalysedforthereportrelyoncarbondioxideremovalsfromforestryandotherbiologically-relatedcarbonsequestrationmethods(dubbed“nature-basedsolutions”)topropuptheirassertionthattheirfutureemissionsareoffset.Thecruxofthisargumentisthattheimpactontheclimateisnodifferentthaniftheemissionswereneveremittedinthefirstplace.6CHAPTER

3MainfindingsMobiquitysurveyed600C-suitebankingexecutives

acrosstheUnitedStates,UnitedKingdom,theNetherlands,andAustralia.TheproportionofC-suitessurveyed

whosaidsustainablebankingisatopconcernatboardlevel

hasdecreased,withjustover

2in5(41%)sayingthisin2022,butover

justaquarter(26%)nowsayingthisin2023.7Top

concerns

atboard

level

forbanksacross

all

regionsTheproportionofC-suitessurveyed

whosaidsustainablebankingisatopconcernat

boardlevel

hasdecreased,withjustover

2in5(41%)sayingthisin2022,butover

justaquarter(26%)nowsayingthisin2023.United

States30%20%10%0%PresenteconomicclimateTalentSustainable

Digitaltrans-banking

formationIncreasedregulatorycomplianceBankingIncreasingConsumermanagementinstabilitycompetition

confidenceUnited

Kingdom30%20%10%0%PresenteconomicclimateTalentSustainable

Digitaltrans-banking

formationIncreasedregulatorycomplianceBankingIncreasingConsumermanagementinstabilitycompetition

confidenceNetherlands30%20%10%0%PresenteconomicclimateTalentSustainable

Digitaltrans-banking

formationIncreasedregulatorycomplianceBankingIncreasingConsumermanagementinstabilitycompetition

confidenceAustralia30%20%10%0%PresenteconomicclimateTalentSustainable

Digitaltrans-banking

formationIncreasedregulatorycomplianceBankingIncreasingConsumermanagementinstabilitycompetition

confidence8Bankswith

asustainabilityrepresentativeatboardlevel100%80%60%40%20%0%Overtwothirds(67%)

ofC-suitessurveyed

saidtheirbankhasarepresentativeat

boardlevel

whooverseessustainabilitystrategy,withAustralia(83%),

followedbytheUS(70%),theNetherlands(63%),andfinally,theUK(54%).Comparedto

2022whenalmost9in10(89%)

C-suitessurveyedsaidyes,

theirbankhasa2021

2022

20232021

2022

20232021

2022

20232021

2022

2023UnitedStatesUnitedKingdomNetherlandsAustraliarepresentativeat

boardlevel

whooverseessustainabilitystrategy,thesepercentageshave

allnotablydecreasedin2023.Reporting

onsustainabilitychallenges

atboardlevel100%80%60%40%20%0%Reportingat

boardlevel

hasdecreasedacrossallregions.ThosefromAustralia(83%)

aremostlikelyto

reportsustainabilitychallenges,withamorenotabledecreaseinUS(63%),UK(54%)andNetherlands(62%).2021

2022

20232021

2022

20232021

2022

20232021

2022

2023UnitedStatesUnitedKingdomNetherlandsAustralia9Importance

ofsustainability

as

part

ofbanksbusiness

strategy100%80%60%40%20%0%Consistentwithfewer

C-suitessurveyed

notingsustainablebankingasaconcernsincelastyear,

sustainabilityalsoseemsto

belessimportantto

thebusinessstrategy.

In2022almostall(97%)

C-suitessurveyed

saidsustainabilityisanimportantpartoftheirbusinessstrategy,whereasthisdroppedto

7in10(70%)sayingthesamein2023.2021

2022

20232021

2022

20232021

2022

20232021

2022

2023UnitedStatesUnitedKingdomNetherlandsAustraliaBankstaking

stepsto

fostersustainablebehaviours

andoutcomes100%80%60%40%20%0%Followingthetrendoflessimportancebeingplacedonsuitabilityat

boardlevel,banksacrossallregionsaretakinglessstepsto

foster

sustainablebehavioursandoutcomes.2021

2022

20232021

2022

20232021

2022

20232021

2022

2023UnitedStatesUnitedKingdomNetherlandsAustralia10To

p

strategicUnited

Statesimperatives

as

part

ofthe

bankssustainabilityagendaacross

allregions12345Strategicimperativesdifferacrossregions.IntheUS,banksarefocussedonaligningto

globalESG/CSRreportingstandardsandempoweringcustomerstoembracesustainability.AligningtoEmpoweringcustomersEmbracingemergingOfferingcustomerssustainableproductsMitigatingglobalreportingstandardsonESG/CSRclimatechangerisksthroughassessingclientportfolioto

embracesustainabilitytechnologiesIntheUK,banksassessclientportfoliosto

mitigateclimaterisksanddrivesustainability.United

Kingdom12345IntheNetherlandsandAustralia,bankingC-suitessaytheyembraceemergingtechnologiessuchasmachinelearning,artificialintelligence,cloud,analyticstodriveESG,aswellasofferingcustomerssustainableproductsandservices.MitigatingDrivingEmbracingemergingEmpoweringcustomersOfferingcustomerssustainableproductsclimatechange

sustainabilityasrisksthroughassessingclientportfoliopartofanESGstrategytechnologiesto

embracesustainabilityNetherlands12345OfferingcustomerssustainableproductsEmbracingemergingDigitalisingprocessestoreducethebank’scarbonfootprintEmpoweringcustomersAligningtoglobalreportingstandardsonESG/CSRtechnologiesto

embracesustainabilityAustralia12345EmbracingemergingOfferingcustomerssustainableproductsEmpoweringcustomersDrivingInvestinginsustainabilityas

greenfinancetechnologiesto

embracesustainabilitypartofanESGstrategyinitiatives11Initiatives

employed

bybankstobe

sustainableUnited

States1Developingdigital

applicationsforclients

tobe

moresustainable.Banksinallregionsaredevelopingdigitalapplicationsforclientsto

besustainableanddigitalsolutionsto

createsustainableoutcomes.Australiaisfocussingonencouragingremoteworkingtoreducecustomerandstafftravel,astheydidlastyear.23456Digital

solutions

tocreatesustainableoutcomes.Investingin

carbon

credits.AcceleratedCloud

adoption.Encouraging

remoteworkingamongemployees

toreducetravel.Closing

branches.United

Kingdom1Digital

solutions

tocreatesustainableoutcomes.23456Developingdigital

applicationsforclients

tobe

moresustainable.Encouraging

remoteworkingamongemployees

toreducetravel.AcceleratedCloud

adoption.Investingin

carbon

credits.Closing

branches.Netherlands1Digital

solutions

tocreatesustainableoutcomes.23456Developingdigital

applicationsforclients

tobe

moresustainable.AcceleratedCloud

adoption.Encouraging

remoteworkingamongemployees

toreducetravel.Closing

branches.Investingin

carbon

credits.Australia1Encouraging

remoteworkingamongemployees

toreducetravel.23456Digital

solutions

tocreatesustainableoutcomes.Investingin

carbon

credits.Closing

branches.Developingdigital

applicationsforclients

tobe

moresustainable.AcceleratedCloud

adoption.12Main

barriers

toadopting

sustainablebehavioursUnited

States12345Inpreviousyears,thelackofacohesiveESGismentionedasabarrierintheUS,UKandtheNetherlands.Incontrastto

this,in2023limitedaccessto

talentandexpertiseisabarrierinallregions.TheUSandUKbankingexecutivesalsosaidthatculturallegaciesneedto

beshifted,to

beabletoadoptsustainablebehaviours.Limitedaccessto

talentandexpertiseCulturalBudgetimplicationsIndustryLackofalegaciesneedto

beshifteddemandscohesiveESGstrategyUnited

Kingdom12345LackofaCulturalIndustryStakeholderse.g.Limitedaccessto

talentandexpertisecohesiveESGstrategylegaciesneedto

beshifteddemandsshareholdersandinvestorsNetherlands12345IndustryLittleknowledgeofthemarketandhowLackofaStakeholderse.g.Limitedaccessto

talentandexpertisedemandscohesiveESGstrategyshareholdersandinvestorsto

drivesustainabilityAustralia12345Limitedaccessto

talentandexpertiseBudgetLittleknowledgeLongtermCulturalimplicationsofthemarket

commitmentto

legaciesneedandhowto

driveexecutionto

beshiftedsustainability13Benefits

of

sustainablebankingUnited

States12345C-suitessurveyed

arelesslikelyto

saytheyhave

experiencedallsustainablebankingbenefitsin2023comparedto

2022,withincreasedprofitability(30%2022,17%2023)andattractingdedicatedlong-terminvestors(30%2022,19%2023)seeingthelargestdecrease.IncreasedoperationalefficiencyacrossthebusinessAcquiringandretainingtoptalentContributingAcceleratedinnovationMaintainpracticesagainstto

apositiveimpactwithinsocietybusinesscompetitionThetop3benefitsexperiencedby

C-suiteshave

changedsincelastyear.

Forexample,in2022increasedprofitability(30%),attractingdedicatedlong-terminvestors(30%)andimprovedbrandreputation(28%)weremostlikelyto

benoted.InUnited

Kingdom12345CostsavingsIncreasedcustomerMaintainpracticesagainstImprovedbrandreputationContributingto

apositiveimpactwithinsocietycontrast,acceleratedinnovation(23%),costsavingthroughinnovationdigitalproducts&services(22%)andmaintainingpracticesagainstbusinesscompetition(21%)arethetopbenefitsin2023.throughinnovativeretentionandgrowthdigitalproducts&servicesbusinesscompetitionNetherlands12345AcceleratedinnovationMaintainpracticesagainstImprovedbrandreputationIncreasedoperationalefficiencyacrossthebusinessContributingto

apositiveimpactwithinsocietybusinesscompetitionAustralia12345AcceleratedinnovationIncreasedoperationalefficiencyacrossthebusinessCostsavingsthroughImprovedbrandreputationMaintainpracticesagainstinnovativedigitalproducts&servicesbusinesscompetition14Banksusing

digitaltransformation100%80%60%40%20%0%initiatives

todrivesustainable

outcomesThereisaslightdecreaseinbanksreportingthattheyareusingdigitaltransformationtodrivesustainableoutcomes.Thepresenteconomicclimateandtalentacquisitionmightbethereasonsforthedecrease.2021

2022

20232021

2022

20232021

2022

20232021

2022

2023UnitedStatesUnitedKingdomNetherlandsAustraliaMeasuring

ESG

impactas

part

of

sustainabilitytargets100%80%60%40%20%0%Asinpreviousyears,justoverhalfofbanksaremeasuringsustainabilityandpredominantlythesocialangleofsustainability.EnvironmentalSocialNetherlandsGovernanceUnitedStatesUnitedKingdomAustralia15Mostcommon

ESG

risksfacedby

banksUnited

StatesUnited

KingdomNetherlandsAustraliaESGrisksvaryacrossregionswithC-suitessurveyed

inAustralia(44%)

andtheUK(39%)notingsocialandcommunityrisksasthemostcommonESGrisksfacedby

theirbank.WhileC-suitessurveyed

intheUS(39%)statedreputationalrisks,andtheNetherlands(37%)cybersecurityrisks.39%in202332%in202331%in2023ReputationalrisksClimatechangerisksCybersecurityrisks39%in202336%in202331%in2023Social&ClimatechangerisksReputationalriskscommunityrisks37%in202333%in202332%in2023CybersecurityrisksGovernancerisksSocial&communityrisks44%in202341%in202337%in2023Social&ClimatechangerisksDiversity&communityrisksinclusionrisks16Preferredtechnologiestobe

used

tosupportESG

and

transparencyin

the

banking

sectorUnited

States39%Developingblockchain-basedsolutions2in5C-suites(40%)surveyedsaidtechnologycanbestbeusedto

supportESGreportingandtransparencyinthebankingsectorby

implementingdigitaltoolsandplatformsto

collect,analyse,andreportESGdataandmetricsinastandardisedandconsistentmanner.Whilejustunder2in5(36%)C-suitessurveyed

noteddevelopingdatavisualisationtoolsto

improvestakeholderengagementandunderstandingofESGrisksandopportunitiesasapreferreduseoftechnologyto

supporttransparency.39%Developingdatavisualisationtools36%Implementing

digital

toolsand

platformsUnited

Kingdom41%Developingdatavisualisationtools37%Using

ML

and

AI37%Developingblockchain-basedsolutionsNetherlands43%Implementing

digital

toolsand

platforms41%Implement