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Sustainable Finance Transformation: Navigating the Path to Environmental and Social Investing

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As the world transitions towards a more environmentally sustnable and socially inclusive future, opportunities for financing and reallocation of capital are growing at an unprecedented pace. Boston Consulting Group BCG collaborates with clients to build capabilities in sustnable finance and investing.

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Measurement Matters

Veronica Chau from BCG joins Maria Kozloski of the Rockefeller Foundation to discuss climate finance and the progress needed to ensure governments, investors, and corporations are making the greatest impact possible.

In response to the increasing relevance of environmental and social factors on financial performance, financial institutions are cultivating new capacities for leveraging emerging financing opportunities and mitigating risks associated with Environmental, Social, and Governance ESG considerations. This transformation towards sustnable finance and investing is rapidly becoming a source of competitive advantage.

At BCG, we assist financial institutions in developing strategic and operationalto fulfill their sustnable finance and investment ambitions. We help them translate net-zero commitments into action plans. Furthermore, we collaborate with corporate and investment banks to better explore opportunities within the realm of sustnable finance. Additionally, we support asset managers and wealth advisors in unlocking the value from their sustnable investing capabilities while avoiding greenwashing.

BCG's Approach to Sustnable Finance and Investing

BCG is ding banks, asset managers, and other financial institutions in realizing competitive advantages through sustnable finance and investing. Here are just some examples of our services:

Unlocking business value through enterprise-wide sustnable investment strategies.

Setting ESG targets, benchmarking, and scenario planning, implementing ESG roadmaps, and strategic action plans for sustnable finance.

Creating social and sustnable finance frameworks alongside sustnable finance strategies to guide investments.

Identifying and pursuing high-impact sustnable investing opportunities that capture market share in environmental and social categories.

Establishing CO2 FI-based net-zero targets across portfolios and financial activities using BCG's proprietary measurement tool for financial institutions.

Exploiting the potential of carbon markets.

Building forward-thinking ESG data collection and reporting capabilities while effectively addressing demands from regulators, standard setters, and other stakeholders.

Identifying correlations between valuation multiples and ESG scores.

Establishing a target operating model to deliver on sustnable finance ambitions.

Tloring sustnable finance solutions for corporations to help CFOs navigate sustnability initiatives and adapt to the trs of sustnable investing.

BCG Clients' Success in Sustnable Finance and Investing

A global bank set an m to become a leader in sustnable finance by 2025. BCG identified commercial opportunities, developed a sustnable finance framework and strategy, created a two-year execution roadmap, and doubled the original ambition size. The bank is now on track to become a market leader in sustnability.

One of the world's largest asset management companies set a target for net-zero investments by 2030 through strategic action plans. BCG helped them achieve this goal by identifying high-impact sustnable investing opportunities that capture market share in environmental and social categories, leading them towards becoming more competitive and responsible investors.

The Paris-based bank was faced with the task of decarbonizing its portfolio while mntning profitability. By leveraging BCG's expertise on CO2 FI-based net-zero targets using proprietary tools like CO2 FI, they were able to successfully align their investments with climate goals without compromising financial performance.

In response to growing concerns about responsible investing and ESG considerations in private equity transactions, BCG advised the multinational corporation on how best to integrate these factors into investment decisions. This collaboration enabled them to identify potential risks and opportunities that could impact returns, leading to more informed decision-making processes that align with both environmental sustnability goals and financial objectives.

The sustnable finance consulting team at BCG has deep expertise in sustnable investing and sustnablesocial finance. Here are some of our experts:

Douglas Beal - Partner Director, Sustnable Investing Social Impact

New York

Veronica Chau - Partner Director, Sustnable Investing Social Impact

Toronto

Roy Choudhury - Managing Director Senior Partner

New York

Amine Benayad - Managing Director Partner

Paris

Eriola Shehu Beetz - Managing Director Partner

London

Jesper Nielsen - Managing Director Senior Partner

London

Explore More on Sustnable Finance and Investing

Meet the Leadership Team behind our sustnable finance consulting services, which combines deep expertise in sustnable investing and sustnablesocial finance.

Douglas Beal

Veronica Chau

Roy Choudhury

Amine Benayad

Eriola Shehu Beetz

Jesper Nielsen

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