The banking sector is facing the challenge of very strong national, European and global pressure for the firm establishment of sustainable finance as a true strategic process. The increasing pressure for sustainable development in the banking sector is now firmly established ESG factors in risk assessments. Upcoming regulators’ roadmaps, public policies and financial frameworks embed new types of risks, such as risk of default resulting from the alteration of the repayment capacity of loans, increased probability of default by borrowers, risk of asset impairment or reputational risk… The strain caused by these external drivers, has been accelerated by the expectations of end-consumers. As funders to the real economy, banks have significant leverage to support changes in their clients’ practices. Sustainable finance is the opportunity for banks to reinforce the imperatives at the heart of sustainable development: less short-term and more long-term projects, more transparency, better governance and ethics, mitigating climate change and supporting the transition to new business models.
