Banking and Companies, Increasing support from banks to businesses that integrate environmental, social and corporate governance aspects
Banks: ABI, the commitment to sustainable business growth is strengthened
Banks increasingly committed to promoting the growth of businesses in the name of economic, social and environmental sustainability. From the latest survey conducted by ABI, the Italian Banking Association, on Non-Financial Statements (Dnf) published by banks in 2020, the growing support of banks for companies that integrate environmental, social and corporate governance aspects (acronym Esg from ‘English Environmental, Social and Governance) in carrying out their activities and undertaking a transition path towards organization and business models based on sustainability.
The survey, carried out on a particularly representative sample of the banking sector (the coverage of respondents is equal to 94% of the total assets of the sector), helps to outline a picture of the evolution of non-financial reporting practices also in light of the regulatory push European Union for Sustainable Development.
Climate change
The ABI survey highlights the growing attention of the banking sector to the possible consequences, also in terms of opportunities, that climate change can have on businesses. According to the survey, banks representing approximately 76% of the total assets of the sector already report on initiatives carried out to promote better management of the risks of client companies related to climate change.
The survey focuses on banks in their dual role both as entities that fall under the obligation to publish their non-financial statement and as ‘users’ of the information in the reports of other subjects.
With reference to the evolution of non-financial statements of counterparties, according to the survey, 51% of the total assets of the banking sector indicate as a priority the availability of information for the assessment of their exposures in compliance with the EU sustainability principles defined in the Regulation on taxonomy which provides for a series of technical requirements to be respected so that the economic activity can be considered climate-friendly and thus reported by the bank.
Among the priority information that the bank needs, follows (44% of total assets) the measurement with quantitative data of the objectives for improving the mitigation profile and adaptation to climate change of the economic activities of companies that concern, for example, the reporting on the reduction of Co2 emissions and for the adaptation of the geolocation coordinates for the assessment of physical risk.
Rome, April 3, 2021
Fonte Abi, Italian Banking Association
