Sustainable Finance in Financial Services (2024)

What EY can do for you

Our EY teams can help your firm contribute to sustainable and inclusive growth, manage regulatory impacts and mitigate climate change by incorporating ESG factors into decision-making.

EY’s climate change and sustainability practices have over 1,400 advisors across the globe. Clients benefit from EY regulatory horizon scanning tools, benchmarking analysis and leading-edge thought leadership.

• Shifting sustainability from a reporting-led conversation to a value-based narrative, engaging with the C-suite to turn sustainability into a business opportunity and helping companies create and protect value.

  • Sustainability report and strategy alignment – assist you with your ESG strategy framework and path to becoming an ESG leader. This includes bringing your purpose to life, creating a vision and developing a roadmap to achieve your sustainable finance goals.
  • Long-term value strategy – assist to identify where and how you differentiate through sustainability and long-term value creation. EY teams integrate sustainability into how your teams make decisions and help align your business functions with a common ESG strategy.
  • Market scan and benchmarking – co-create benchmarking criteria with you and your stakeholders, conduct research to assess your company against the framework, and turn findings into analysis that shows where you stand with your peers.
  • Product development – develop your ESG product strategy and conduct an assessment of existing products to facilitate they meet sustainability criteria.

• Supporting clients to accelerate their net-zero transition journey and helping them execute change projects in their organizations.

  • Net-zero commitments – integrating your net-zero ambition throughout your business so that your business is accountable to these goals – creating value from your long-term, low-carbon position.
  • Integration of climate risk into ERM – support your climate risk assessment and strategic planning by incorporating your climate risk data into your data models and aligning your climate and ESG disclosures to create a sustainable and repeatable process.
  • Stress testing and scenario modelling – test scenarios against your business model to facilitate your plans are calibrated at the appropriate intensity and in line with regulatory expectations.
  • European Union (EU) action plan – assess the impacts of the EU Action Plan on your business, performing detailed gap analyses and devising and implementing solutions for your business.
  • Tax – recognize that governments around the world are increasingly using tax policy to address climate change and achieve their environmental targets. These policies include tax credits and incentives, as well as carbon pricing regimes. EY professionals encourage companies to stay informed about current and future policy changes. We can also advise on tax incentives to use for greening company operations and help manage new carbon taxes while firms reduce their carbon footprints. Additionally, EY professionals work with companies to reduce risk by helping them to meet compliance and reporting requirements are met.
  • Data & technology – understand what data is most important to help define a process that is focused on providing high quality data outputs within a customized and fully integrated ESG data model.

• Evaluating the strategic and business value of improving ESG ratings, whether it is improved access to capital or increased investor confidence. Activating a roadmap and working with wider stakeholders to accelerate key components of EY client’s ESG strategy.

  • Sustainability reporting – identify your ESG reporting requirements and streamline your reporting process through an integrated reporting framework.
  • Task force on climate-related financial disclosures (TCFD) – provide guidance as to whether your climate risk reporting is consistent with the recommendations of TCFD and help implement changes required to improve your disclosures.
  • Green bonds – help certify green bonds against the Green Bond Principals and/or the Climate Bonds standard, of which the EY organization is an approved verifier. EY teams can conduct assurance services both before and after the issuance of a green bond and verify the reporting associated with the impacts of projected “green attributes” on a periodic basis.
  • Role of finance function – work with your finance function to develop their sustainability strategy. This can be achieved by creating, measuring, and communicating long-term value and drawing a connection between non-financial and financing reporting to help manage long-term risks.
  • Enterprise-wide training – train your team on sustainable finance, from board-level to all employees, across different business functions.
  • Stewardship – evolve your ESG stewardship to attract long-term investors and secure stakeholder supporld.

The team