What are the determinants that wield the greatest influence on financial companies’ reputation, and how can enterprises take pre-emptive measures to minimize their repercussions? Following the high-profile collapse of several banks in March, in part due to reputational perils, as well as annual general meeting (AGM) season for several UK and US banks falling this month (May), it is prudent to shed light on a prominent stakeholder reputational challenge that has witnessed rapid acceleration in recent times ー sustainability.
For stakeholders, including investors, customers, employees and regulators, the integration of sustainability considerations into financial decision-making and operations is becoming increasingly essential. It signals a willingness by companies to invest in responsible practices, thereby mitigating reputational risks. We investigate why the issue of sustainability has increased, what it means for banks, as well as the risks and opportunities it presents.
“The largest financial players in the world recognize that energy transition represents a vast commercial opportunity as well as a planetary imperative.” John Kerry, U.S. Special Presidential Envoy for Climate