Risk Control has recently implemented client and research projects related to ESG. These include designing processes to integrate ESG components into business strategy, and benchmarking against approaches adopted by comparable institutions.
We have also been involved in defining ESG internal metrics for the relevant themes (sustainability, transition, carbon, etc.), supporting firms procuring ESG data from vendors and devising bespoke ESG ratings and reporting.
Our innovative research includes methods for integrating ESG factors in credit scoring, estimating ESG effects in corporate bond pricing, and integrating ESG and credit risk in portfolio modelling.
See some of our related insights
ESG and Credit Rating Correlations
ESG Strategy for Banks: Tackling the Data Problem
Here are some example assignments completed:
For a bank, we devised a set of strategies for sourcing and applying ESG data.
For a large non-financial client, we analysed how they are regarded by the market from an ESG perspective.
For several clients, we provided analysis of how to integrate ESG with other risk activities.