Embrace data to accelerate sustainability

With societal and regulatory pressures growing, the financial sector needs comprehensive ESG strategies.

Social responsibility and reputational impact are driving the need to reevaluate the global finance sector’s role as an economic pillar and steward of a sustainable future. But despite broad recognition of sustainability’s critical importance, there is a noticeable gap between intent and execution.

To understand the position of the financial sector, Capgemini surveyed 248 financial services executives in 12 markets. Using insights gained from the survey, this report outlines a compelling business case for comprehensive ESG data strategies in the financial sector.

Key insights from our report

1. Rising concerns of greenwashing
   The lack of transparency in reporting social sustainability initiatives has led to widespread skepticism and growing concerns about greenwashing.
2. Translating ESG goals into actionable steps
   While 67% of leaders agree that the benefits of sustainability outweigh the costs, a significant gap remains between intention and action. Many financial institutions struggle with ESG data collection, tracing and reporting.
3. The importance of reliable ESG data
   Unreliable data continues to hinder sustainability efforts. The lack of automated ESG data collection systems and centralized data management has led to fragmented reporting.
4. Four pillars of sustainable transformation
   Our report outlines a pathway to advance ESG goals and drive revenue growth through four key pillars: establishing an executive vision for net zero, utilizing data to uncover opportunities, leveraging data and AI for improved risk management, and ensuring seamless, transparent reporting.
5. The role of data in ESG strategy
   By incorporating ESG data into risk management and stakeholder engagement, financial institutions can effectively identify and manage ESG risks, enhance the transparency of their reporting, and strengthen stakeholder relationships. A clear ESG data strategy not only ensures compliance but also supports informed decisions, enabling organizations to thrive in a socially responsible environment.

Next steps for ESG success

As regulatory frameworks such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and the SEC’s Climate-Related Disclosure in the United States become more stringent, the financial sector must adapt quickly. The integration of advanced ESG data management and reporting tools will be crucial in meeting these new requirements.

Navigating the complexities of ESG compliance and data management may be challenging, but it presents numerous opportunities for growth and innovation. By embracing a strategic, data-driven approach to ESG, financial institutions can ensure compliance while also building a competitive advantage.

Access our full report to explore these ESG strategies and learn how they can drive your business transformation.

Capgemini’s role in your ESG success

Our research reveals that 58% of financial services organizations have not automated their emissions data collection process, and only 11% have invested in data cockpits or control towers for ESG insights. We can change that.

Capgemini offers innovative solutions to support your ESG journey, empowering businesses to achieve sustainable success. With tools like Business for Planet Modeling, we help enterprises develop and stress-test sustainable business models using a digital-twin approach. Our ESG Lens, powered by advanced natural language processing, ensures reliable and transparent ESG decision-making by detecting data irregularities and bridging gaps in third-party ESG scores. Additionally, our Sustainability Data Hub provides a robust foundation for ESG intelligence, driving data-driven decisions across all enterprise functions.

Partner with Capgemini to enhance your ESG strategies, mitigate risks, and unlock new opportunities for growth in a socially responsible and environmentally conscious world.