ESG PERFORMANCE Enabling the sustainable transformation of financial institutions - Capgemini

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ESG PERFORMANCE Enabling the sustainable transformation of financial institutions - Capgemini
ESG
PERFORMANCE
Enabling the sustainable
transformation of financial
institutions
                         This document will not be printed
ESG PERFORMANCE Enabling the sustainable transformation of financial institutions - Capgemini
INTRODUCTION

Eighteen of the warmest years on record were                     ESG Performance - part of an institution’s non-financial
registered in the last two decades, and greenhouse gas           performance, or more specifically, a measure of its
emissions continue to rise despite the targets set by the        Environmental and Social impact, as well as its Governance
Paris Agreement in 2016. Ecosystems are under stress             practices – is a series of criteria to assess an institution’s
with significant biodiversity loss, while environmental          sustainability positioning. It is a powerful tool for financial
degradation is increasingly felt on multiple fronts, such        institutions to evaluate, measure and monitor where they
as air and water pollution. Businesses and communities           stand in terms of sustainability, steer decision making,
around the world are already feeling the impact,                 and communicate on progress towards sustainability
most evidently with the increasingly frequent natural            commitments.
catastrophes, such as wildfires and flooding.
                                                                 How should financial institutions fully integrate ESG
                                                                 performance considerations into their processes?
Today, research shows that we may be reaching a tipping          It is a challenge. But, due to urgent climate considerations,
point, emphasizing the urgency for individuals and               and a growing mobilization of the international community
institutions to take action to protect the environment.          around sustainability, a large number of best practices,
While global efforts are still disjointed, momentum has          standards and regulations are emerging. These are helping
been growing since the Paris Agreement, placing financial        to structure the response of financial institutions to the
institutions at the heart of the transformation towards          challenge of transformation ahead of them.
a more sustainable economy. Through their central role and
economic influence, financial institutions are well positioned   This report aims to address the question of how financial
to be key players in the global sustainability agenda.           institutions can adjust to the existing and upcoming
                                                                 regulations pushing them to leverage ESG performance
                                                                 as a tool to be active participants in the decarbonization of
                                                                 the economy. It will use concrete and operational examples
                                                                 of how to lead the transition to a sustainable economy.

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ESG PERFORMANCE Enabling the sustainable transformation of financial institutions - Capgemini
“As more investors
choose to tilt their
investments towards
sustainability-
focused companies,
the tectonic shift
we are seeing will
accelerate further.
And because this
will have such a
dramatic impact
on how capital is
allocated, every
management team
and board will need
to consider how this
will impact their
company’s stock”
LARRY FINK
– BLACK ROCK CEO1

                    3
ESG PERFORMANCE Enabling the sustainable transformation of financial institutions - Capgemini
KEY
TAKEAWAYS

Financial institutions, key players
in the decarbonization of the
economy, need to demonstrate
agility and pragmatism to
accelerate their sustainable
transformation:
• Financial institutions are facing      • With the transformation presenting          fight against climate change. This
  an in-depth transformation of            a series of open-ended questions            raises some uncertainty around
  their role in the financing of the       in terms of the operational                 the role the United States will play
  economy, with a growing focus on         repercussions of these changes,             in the development of existing
  directing capital towards projects       coping and making the most of               sustainability standards and norms,
  and companies contributing               this still maturing environment will        whether they will collaborate with
  to the sustainable shift of the          require pragmatism, agility, and            the EU on their development and
  economy at large. This change            flexibility from financial institutions2.   implementation or rather impose
  stems from the pressures of the                                                      their own framework.
  ecosystem (investors, clients, and     • European financial institutions are
  all stakeholders in general) and         leading the way when it comes
  of a rapidly evolving landscape of       to integrating sustainability in
  regulations and market norms,            their value chain and defining ESG
  combined with the realization of the     norms and standards3. The Biden
  beneficial nature of this change for     administration in the United States
  their own performance.                   re-engaged in the Paris Agreement
                                           in early 2021 and is showcasing
                                           a strong ambition to take a leading
                                           role on sustainability and in the

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ESG PERFORMANCE Enabling the sustainable transformation of financial institutions - Capgemini
A skillful orchestration of the use of data is a prime success
factor to ensure the integration of ESG considerations:
• Measurement of the non-financial
  performance of third parties and
  transactions is the one core issue
  to be addressed to make overall
  non-financial accounting work and
  provide the necessary input for
  relevant decision-making.

• Addressing this issue in a still
  maturing environment, with scarce
  and often unstructured data of
  uneven quality, requires a long-
  running iterative approach to
  identify and source relevant data
  and combine it with existing data to
  gain expected insights. In particular,
  creating ecosystems of relevant
  partnerships with external data
  providers can be a potent lever in a
  market with fast emerging solutions.

• The experience and best practices
  gained in the implementation of
  regulatory-driven transformations
  over the 2008-2018 decade should
  be put to good use, particularly
  the insights on the redefinition of
  processes to account for the digital
  transformation, the integration
  of artificial intelligence and
  automation, and the leverage of
  human centric design for reporting.

                                                             5
ESG PERFORMANCE Enabling the sustainable transformation of financial institutions - Capgemini
The magnitude of change will have deep rooted
ramifications for financial institutions, and demands the
robust development of a specific trajectory, governance
and communication plan:
• As with any cultural change, the         • Beyond the communication that is           • In our experience, convergence and
  journey starts with the definition of      required around reporting, it will be        industrialization of the accounting,
  a corporate-level strategy structured      key for financial institutions to engage     a steering infrastructure,
  along the growing body of norms            in an ongoing internal and external          a reporting framework, and a robust
  and standards. The change needs            communication to mobilize both               communication plan are key levers
  to be rooted in most functions and         employees and clients around those           for success. Their implementation
  embedded into the overall structure        topics.                                      through iterative and agile processes
  of those institutions – new roles, new                                                  will pave the way and ensure
  responsibilities, and a governance                                                      efficiency to avoid later-stage
  structure to lead the efforts around                                                    refactoring and remediation.
  sustainability.

KEY CLIMATE STAKES IN EUROPE4

       55%                                               Climate
                                              UP TO

                                              USD 6.9 tn neutrality
       cuts in greenhouse                     required up to 2030
       emission (from 90s                     to meet climate and                        to be achieved before 2050
       levels) targeted in                    development objectives                     in Europe, through creating an
       Europe by 2030                                                                    economy with net-zero
                                                                                         greenhouse gas emissions

                                                                                                                                  6
ESG PERFORMANCE Enabling the sustainable transformation of financial institutions - Capgemini
A NEW BOTTOM LINE FOR
FINANCIAL INSTITUTIONS:
non-financial performance to lead
the path towards the sustainable
transformation of the economy
                                    7
ESG PERFORMANCE Enabling the sustainable transformation of financial institutions - Capgemini
The sustainable transition of the         • Growing demand for the inclusion           of the environment need to be
economy is a massive endeavor,              of non-financial risk factors (e.g.,       assessed, evaluated, and monitored
requiring substantial funding               environmental risks) in traditional        as part of the financial institution’s
exceeding the capabilities of               risk models.                               risk management framework.
states, prompting the need for                                                         Financial institutions will have to
private funding of the transition.                                                     further adjust internal processes
This transition is fueled by:             The direct impact of this                    to integrate how to capture risks
                                          transformation means that                    related to non-financial performance
• The significant appetite of             financial institutions need to               in their risks analysis.
  consumers, employees, investors,        adjust internally and to start
  various stakeholders, and the public    considering a double bottom line
  at large, to purchase from, invest      including financial returns and            Concretely, we believe such a
  in and interact with responsible        sustainability. The operational            transformation needs to be played
  institutions;                           consequences are threefold:                on 4 different levels:

• A growing number of regulations         • Performance is no longer linked          • Strategic, to formulate relevant
  and norms aimed at funneling              to financial results only: financial       goals and align the company with
  financing towards the most                institutions’ performance is now also      its ambitions;
  sustainable companies, ventures,          related to non-financial objectives,
  and projects.                             (climate, social, etc.) regulated by     • End-to-end integration of ESG
                                            external institutions (mainly, as of       performance and sustainability
                                            today, by the European Commission).        considerations in business decisions
Europe has led the way in                   This criterion heavily relies on the       and steering throughout the credit
developing a sophisticated                  nature, quality, and sustainability of     and investment value chains;
framework of regulations to adjust          companies and of projects that are
the structure of financial markets          supported and funded. To this end,       • Specific data usages to address
through:                                    sustainability aspects need to be          the dual issue of third-party non-
                                            embedded and evaluated in business         financial performance measurement
• The development of a definition of        decision-making processes to deliver       and company-wide accounting;
  what it means to be responsible and       on this new set of non-financial
  sustainable (e.g., EU Taxonomy) for       objectives.                              • Fully-fledged data management
  all large companies;                                                                 to handle the sourcing, lifecycle,
                                          • Transparency is key for compliance         distribution, and usage of the data.
• The imposition of disclosure              and recognition: broad and
  requirements for relevant and             increasing transparency
  legible measurements of the               requirements mandate the
  non-financial performance of              construction of trustworthy
  their activities (e.g., Non-Financial     reports addressing expanding
  Reporting Directive – NFRD – since        regulatory requirements and
  2018, and the much more ambitious         reporting progress on the company’s
  upcoming Corporate Sustainability         objectives, commitments, and non-
  Reporting Directive – CSRD –              financial performance at large, in a
  expected by 2022);                        clear and legible way. This involves
                                            a transformation of reporting
• The development of regulations            processes that affects a wide range
  to ensure transparency on the             of roles within the bank, from an
  actual non-financial performance of       investment officer to an investor
  investments (Sustainable Finance          relations or communications team.
  Disclosure Regulation – SFDR) for
  market participants,                    • Risk management expands to
  or ensure proper performance              integrate new risk factors: the
  measurement (Green Benchmark);            implications of new risk factors
                                            related to the transformation

                                                                                                                              8
ESG PERFORMANCE Enabling the sustainable transformation of financial institutions - Capgemini
KEY CONSIDERATIONS
for financial instiutions
to move forward in this
transformation

                            9
ESG PERFORMANCE Enabling the sustainable transformation of financial institutions - Capgemini
Start small: pragmatism and agility

One of the main challenges of             The precise structure of this               In our experience, accessible yet
this transformation is its current        transformation, the exact stipulations      transformational projects could
unstructured and immature nature:         of the regulations, and what the            include:
                                          financial sector is meant to look like
• The regulatory framework overall,       once this process matures are still         • Initiation and industrialization of
  and in Europe in particular, is still   undefined, fluid and a work in progress.      a sustainable transformation cockpit
  undergoing rapid developments           The challenge that financial institutions     to steer the transition and federate
  with major pieces of legislation and    face today is not one of immediate and        entities across strategic initiatives,
  regulatory standards still pending      massive transformation, but rather one        corporate-level commitments
  finalization (CSRD, SFDR, 4 of the 6    of a gradual long-term journey that           and regulatory requirements
  objectives of the EU Taxonomy, etc.).   will eventually change the face of the        as they arise.
                                          financial sector.
• Market norms and standards have                                                     • Measurement of asset portfolio ESG
  seen a flurry of recent developments    Our convictions remain that:                  performance to enable financial
  aimed at providing actionable                                                         institutions to understand how to
  solutions to comply with new            • Financial institutions need to engage       relocate capital in a way that actively
  requirements (PACTA, PCAF, SBTi-          in this transformation early, given         supports the decarbonization of the
  Finance, etc.).                           the time required to handle the             global economy.
                                            far-reaching implications on their
• Solution vendors (rating agencies,        business models, asset portfolios,        • Sustainability-oriented customer
  data providers, e.g.) are either          processes or simply staff skillsets         segmentation, to support
  emerging or gradually maturing their      and levels of awareness. For                opportunities arising as a result
  value offerings to match market           example, sustainability related risks       of the sustainable transition of
  trends and new requirements as            and opportunities have multiple             the economy (e.g., for sustainable
  they surface.                             touchpoints along the investment            investment appetite qualification or
                                            and lending process, resulting in the       for corporate transition opportunity
• Clients of financial institutions are     need for top-down coordination              targeting).
  themselves looking for their path         and steering.
  forward within this “new normal”,                                                   • Non-financial risk integration in
  with their own set of interests, and    • Agility, combined with                      asset-centered risk models to
  sector-specific approaches and            experimentation and a keen market           integrate risks resulting from
  constraints.                              and regulatory watch, will be the key       climate change and other physical
                                            success factors to navigate the fast-       and transition risks into traditional
• This general sense of instability is      moving environment.                         risk models.
  further reinforced by the recent
  re-entry of the United States in the    • Financial institutions should identify
  arena. As the Biden administration        a few projects with perceivable
  has reintroduced sustainability as        business-oriented results, launch
  a priority, an opportunity arises for     a first iteration, and prepare for
  the EU and the US to co-construct         subsequent iterations to adapt
  a global framework leveraging the         to the evolving environment and
  work done by the EU in the past few       expand the transformational
  years. Today, uncertainties around        outcome.
  the approach that will be retained by
  the US Government, its legislators
  and regulators remain.

                                                                                                                                10
“As the EU moves
towards climate
neutrality and steps
up the fight against
environmental
degradation,
the financial and
industrial sectors
will have to undergo
a large-scale
transformation,
requiring massive
investment5”.
EU COMMISSION

                       11
Embrace the change as an opportunity

With the structuring of financial            • Adapt pricing to non-financial
markets on non-financial                       performance of clients and
dimensions, financial institutions             counterparties, in line with their own
are now in the position to make                expected lower funding costs;
a significant contribution to the
transition of the economy towards            • Develop data-based value-adding
more sustainable models by                     services such as investment
trickling down their objectives to             analytics, transaction-based ESG
their clients.                                 analytics (incl. PSD2-enabled
                                               opportunities), or benchmarking on
Our conviction, for financial                  non-financial dimensions.
institutions is that this
development is bound to result in
a virtuous circle whereby:                   The availability and exploitation of
                                             relevant ESG data will be a key success
• Direct revenues can be drawn from          factor to reap the full benefits of these
  both transition-related projects           new trends.
  carried out by their clients, and from
  investors’ appetite for ESG-aware or
  ESG-driven investments;

• More ESG-performing clients will
  result in a more favorable footprint
  for banks, with both top-line (better
  reputation drawing and helping
  retain more clients) and bottom-line
  effects (lowering funding costs).

To make it work in practice,                                                             INTEGRATION OF ESG STEERING IN
                                                                                         DAY TO DAY SUPERVISION
financial institutions should seek
                                                                                         OF THE ACTIVITY:
to leverage the new expertise,
data, and models they develop or
acquire, to adopt a new advisory                                                         In several financial institutions where
posture towards their clients on                                                         CO2 footprint related KPIs were
their transition and:                                                                    introduced to steer portfolios, we
                                                                                         have witnessed that the set targets
• Combine (i) knowledge of                                                               often clashed with the previously
  international, national and local                                                      set financial growth targets. For
  incentives and schemes to facilitate                                                   instance, one bank set a sustainability
  and to fund transition-related                                                         target on its mortgage portfolio to
  projects and (ii) financing capabilities                                               have only the highest energy labels
  to provide more levers for clients to                                                  in 10 years’ time. This could, by no
  engage in their transition;                                                            means, be met with acquisition of
                                                                                         new mortgages alone. To meet both
• Leverage insights drawn from non-                                                      targets, the bank introduced an
  financial risk models to advise clients                                                energy transformation program for
  on significant investment projects;                                                    existing homeowners.

                                                                                                                              12
Orchestrate the use of data and
leverage the relevant ecosystem
To succeed in this transformation,          • The heterogeneity of data, highly
financial institutions must                   sector-, asset- and project-specific,
address the ESG measurement                   requiring a deeper understanding
challenge of their counterparties,            and modeling of non-financial
asset portfolios and trading                  concepts.
book. This is relevant both at
the level of a single unit and to
build a capability to integrate             Our conviction is that the solution to
unit measurements at the wider              these two issues relies on leveraging
group level.                                a combination of several types of data
                                            sources, split by segment, sector and
As the NFRD doesn’t propose a data          geographies, reflecting the specificities
point model, financial institutions         of the latter. Examples of relevant data
have to interpret the regulations           sources include aggregated ratings
and organize for a demonstratable           from specialized sustainability rating
translation towards their own               agencies (Vigeo Eiris, MSCI, Robeco
taxonomy and what data elements             SAM, etc.), datasets bundled in topical
to collect. Ultimately, what is             market standard models (e.g., PACTA,
at stake is the construction of             SBTi), public and open data sources,
a comprehensive non-financial               issued by NGOs and state actors, etc.
accounting infrastructure, presenting
the same level of quality and reliability   We believe the trajectory to building
as financial accounting.                    the comprehensive non-financial
                                            accounting mentioned above
In pursuing this, financial                 goes through a series of iterative
institutions are currently faced            developments, each contributing to
with 2 levels of complexity:                stepping up a lasting infrastructure.
                                            Beyond data sourcing, this gradual
• The scarcity of aggregated,               use-case-driven construction should
  structured, and actionable data           be guided by clear architecture
  to fuel the measurement of                principles to avoid massive subsequent
  sustainable performance of third          remediation projects of the same order
  parties, outside of the large             of magnitude as that demanded by
  corporate segment (midcap, small          BCBS 239.
  cap, professional and retail). As
  financial institutions rely on client
  disclosures, it will become key
  for them to efficiently collect
  sustainability related information
  on clients both at onboarding and
  during the loan monitoring stage.
  Several Fintechs (RepRisk, RDC, etc)
  have jumped onto this opportunity,
  but integration has been limited, or
  fragmented per business unit;

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DATA COLLECTION LEVERAGING
Finally, it is also relevant for financial
                                                                                     LESSONS LEARNT FROM THE PAST
institutions to capitalize on past
lessons learnt. The period from 2008                                                 In our recent benchmark study on
until 2018 was a time of transformation                                              sustainability data management by
for financial institutions around digital                                            financial institutions, we identified
transformation, automation, and                                                      that almost 40% of participating
integration of artificial intelligence                                               banks have no data or rely on
in processes. Today, leveraging best                                                 external data for their sustainability
practices from those transformations                                                 risk assessment. Although banks
can fast track and feed some of the                                                  may start out using external data,
processes that need to be put in place                                               fitting the sustainability profile to
                                                                                     the actual legal counterparty can
to adjust to the new and upcoming
                                                                                     be difficult. External ratings are
regulations. Another of the lessons
                                                                                     mostly published on a consolidated
learnt from that same time is the                                                    group level, and the borrower
importance of privileging central data                                               may only be a part of the group.
governance and taxonomy, rather than                                                 Making the necessary rating
operating under a siloed approach,                                                   adjustments becomes difficult
and putting in place adequate data                                                   without an internal framework
lineage documentation.                                                               in place. We therefore expect
                                                                                     a migration towards internally
                                                                                     based ratings, just as we previously
                                                                                     witnessed in the credit domain.

Set up a dedicated governance for the transition

The success of such a pervasive              • Anticipating and facilitating         • Deploy an ESG Control Tower
transformation of business and                 internal and external                   and the extra-financial indicators
operating models also requires:                communication over posture,             followed at Group level to all
                                               performance, and achievements in        business lines, and integrate them in
• Federating all entities around the           the sustainability space.               traditional management reporting
  Group’s sustainable transformation                                                   and control;
  and creating the appropriate
  level of mobilization of staff and         We believe that addressing these        • Seek full integration of ESG data into
  management on identified impacts;          points requires the setting up of         the financial institution's already
                                             a dedicated governance, based on          established data management
• Monitoring and steering                    the following principles:                 frameworks, formally aligned
  achievements against Group                                                           with the increasingly stringent
  strategy to ensure communication           • Establish an “ESG Control Tower”        requirements of data contributing
  on and adherence with                        aligned with regulations and            to soon-to-be-audited disclosures;
  commitments made by financial                norms, providing a 360° vision on
  institutions;                                achievements along the entity’s ESG
                                               strategy;
• Realize a uniform methodology
  across portfolios, resulting in            • Formalize and promote guidelines
  a sustainability impact that is              across BUs to ensure the right
  measured consistently (preferably            level of consistency on indicators
  LCA based);                                  followed and collected throughout
                                               the Group;

                                                                                                                          14
• Activate and animate the sustainable
  community, including the
  amplification, duplication and cross-
  fertilization of achievements;

• Organize and drive the awareness
  and upskilling of employees on these
  new themes.

A key success factor to the
effectiveness of such governance
is the establishment of a
coalition of key senior-level
internal stakeholders, under CXO
sponsorship, typically:

• Finance, in charge of the
  establishment of audited financial
  (increasingly, of non-financial)
  reports;

• Corporate Social Responsibility
  (CSR) or any equivalent in charge of
  leading the institution’s sustainable
  transformation agenda;

• Data Offices, bringing in the
  weight of the corporate-wide data
  management and usage framework.

                                          15
GET STARTED

              16
Given the trend towards overall             • Sets and maintains the course in               Mobilization of the internal
company-wide transparency and                 providing transversal solutions as             community can follow the activation
the increasing importance of                  well as guidelines and standards               of a company-wide community of
demonstrating performance in                  to (I) facilitate local alignment              sustainability practitioners and
the sustainability field, we believe          with company-level goals and (II)              local transformation leaders. This
an overall centrally steered                  accelerate creation and reuse of               community gradually leads the roll-out
company-wide ESG initiative is                solution building blocks;                      of the ESG Control Tower locally.
an effective model to drive the
establishment of a company-wide             • Provides momentum through                      Of particular importance is the
non-financial accounting model                demonstrating ESG-related and                  initiation of data architecture and
and to use it as an accelerator of            data-enabled business value in                 technological orientations for ESG
the transformation.                           a short time.                                  integration in the operations and
                                                                                             IT systems. The establishment of
In our experience, such an                                                                   such principles is instrumental in
initiative attains the best                It is important to translate group-               maximizing subsequent agility
results if it:                             level strategy, different market                  through enabling the gradual
                                           and ecosystem expectations, and                   construction of an industrial-grade
• Quickly establishes and shares           regulatory requirements into a                    data architecture for ESG.
  a common vision on group-wide            referential of extra-financial indicators.
  ESG ambitions, concrete goals and        The latter forms the blueprint to the             Finally, the construction of a high-
  key metrics, aligned with overall        ESG Control Tower under the form of a             value-added / high-visibility minimal
  corporate strategy, embedding            prioritized repository of extra-financial         viable product (MVP) is a key element
  commitments to the ecosystem and         indicators relevant for the bank (vision          in creating and sustaining momentum
  regulatory requirements;                 & purpose, CSR policies, extra-financial          through demonstrating benefits
                                           communication, regulation, market...).            reaped from the transformation,
                                                                                             as well as providing awareness and
                                                                                             communication opportunities.

                FORMULATE              Corporate level ESG strategy
                A MEANINGFUL
                                       Define relevant objectives, related metrics, align processes and external communication
                STRATEGY

                EMBED ESG              Credit value chain                               Investment value chain
                PERFORMANCE            Develop ESG-specific products, update            Develop ESG-specific products redesign
                THROUGHTOUT            policy, implement integration in operational     investment processes to integrate ESG control
                THE BUSINESS           processes, etc.                                  and supervision, etc.

                ATTAIN SCALE           ESG performance measurement                    Decision-making and supervision
                THROUGH                Orchestrate the implementation of              Leverage reporting infrastructure to
                LEVERAGING             regulations and standards                      systematize company-wide steering of ESG
                DATA USE CASES                                                        performance

                                       Source data           Organize data                Mix data            Leverage data
                INDUSTRIALIZE          Select and ingest      Define and implement        Combine ESG and     Inject data modelling
                THE DATA               the most               a company-wide data         financial data      in business processes
                INFRASTRUCTURE         relevant data          architecture

                                                                                                                                      17
AUTHORS AND CONTACTS
                  Dalia                                                    ESG PERFORMANCE
                  Bahous                                                   COUNTRY LEADS
                                                                           Germany: Kiri von Trier

                  Julien                                                   France : Aurélien Grand

                  Garnier                                                  Belgium: Ilda Dajci

                                                                           Netherlands : Casper Stam

                                                                           SWEFI: Johan Bergstrom

                  Rob                                                      Norway: Liv Fiksdahl

                  van Dijk                                                 Italy: Andrea Scribano

                                                                           Spain: Carmen Castellvi

                                                                           US: Kavita Nar

                  Noemie                                                   UK: John Middlemiss

                  Lauer                                                    Australia: Shaila Pervin

                                                                           Hong Kong: Samuel Levy-Basse

                                                                           Singapore : Tatiana Collins

                  Peiyao                                                   India : Rajesh Varma

                  Liu

Special thanks to
Julien Assouline, Keith Gage, Aurelien Grand,
Joachim von Puttkamer, Stanislas de Roys, Casper Stam.

SOURCES
1 https://www.blackrock.com/us/individual/2021-larry-fink-ceo-letter?gclid=Cj0KCQjwp86EBhD7ARIsAFkgakhWSeYcBkc8lWAoerhxf
  M1i4ep_NsSUvJGv5Kb4UGbKkZs8jATZn8aAlI5EALw_wcB&gclsrc=aw.ds
2 For interesting EU taxonomy implementation lessons learnt from financial institutions see: https://www.ebf.eu/wp-content/
  uploads/2021/01/Testing-the-application-of-the-EU-Taxonomy-to-core-banking-products-EBF-UNEPFI-report-January-2021.pdf
3 See EBA Guidelines on loan origination and monitoring: https://www.eba.europa.eu/sites/default/documents/files/document_library/
  Publications/Guidelines/2020/Guidelines%20on%20loan%20origination%20and%20monitoring/884283/EBA%20GL%202020%20
  06%20Final%20Report%20on%20GL%20on%20loan%20origination%20and%20monitoring.pdf
4 https://www.eea.europa.eu/data-and-maps/indicators/greenhouse-gas-emission-trends-7/assessment
  https://www.oecd.org/environment/cc/climate-futures/policy-highlights-financing-climate-futures.pdf
  https://ec.europa.eu/clima/policies/strategies/2050_en
5 https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52019DC0640&from=EN

                                                                                                                                18
About                                                                         For more details contact:
Capgemini Invent                                                              Dalia Bahous
                                                                              Managing Consultant
As the digital innovation, consulting and transformation brand of the         dalia.bahous@capgemini.com
Capgemini Group, Capgemini Invent helps CxOs envision and build
what’s next for their organizations. Located in more than 30 offices and
                                                                              Julien Garnier
25 creative studios around the world, its 7,000+ strong team combines         Principal
strategy, technology, data science and creative design with deep industry     julien.garnier@capgemini.com
expertise and insights, to develop new digital solutions and business
models of the future.
                                                                              Rob van Dijk
                                                                              Senior Manager
Capgemini Invent is an integral part of Capgemini, a global leader in
                                                                              rob.van.dijk@capgemini.com
partnering with companies to transform and manage their business by
harnessing the power of technology. The Group is guided everyday by its
purpose of unleashing human energy through technology for an inclusive        Noemie Lauer
and sustainable future. It is a responsible and diverse organization of       Vice President – Financial Services
                                                                              noemie.lauer@capgemini.com
270,000 team members in nearly 50 countries. With its strong 50 year
heritage and deep industry expertise, Capgemini is trusted by its clients
to address the entire breadth of their business needs, from strategy and      Peiyao Liu
design to operations, fueled by the fast evolving and innovative world of     Senior Consultant
cloud, data, AI, connectivity, software, digital engineering and platforms.   peiyao.liu@capgemini.com
The Group reported in 2020 global revenues of €16 billion.

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