Finan­cial ser­vices are increas­ing­ly hav­ing to account for the envi­ron­men­tal and social impacts of their invest­ment and lend­ing prac­tices and to com­mit more funds to sus­tain­able finance.

More­over, it is crit­i­cal for them to assess and man­age ESG risks and oppor­tu­ni­ties to enhance their port­fo­lio’s risk-adjusted return.

For this rea­son, many banks, insur­ance com­pa­nies, and invest­ment firms are cur­rent­ly grap­pling with the com­plex­i­ty of inte­grat­ing ESG into these core practices.

Renoir Con­sult­ing helps finan­cial insti­tu­tions to under­stand how ESG impacts their busi­ness activ­i­ties and how they can align ESG with their invest­ment strate­gies, lend­ing activ­i­ties, and risk man­age­ment frameworks.

KEY CLIENT CHALLENGES

1. How can we devel­op and imple­ment a com­pre­hen­sive ESG strat­e­gy that aligns with our busi­ness objec­tives and address­es stake­hold­er expectations?
2. What ESG frame­work should we have in place to reli­ably devel­op and val­i­date green finance, impact invest­ing, and sus­tain­able infra­struc­ture financ­ing in line with glob­al standards?
3. How can we incor­po­rate ESG fac­tors into our invest­ment, lend­ing, and risk man­age­ment process­es to enhance long-term val­ue creation?
4. How can we effec­tive­ly engage with var­i­ous stake­hold­ers, such as clients, employ­ees, investors, and reg­u­la­tors, to encour­age ESG best practices?

Sus­tain­able Finance

Finan­cial insti­tu­tions are com­mit­ting more funds to sus­tain­able finance by devel­op­ing and issu­ing inno­v­a­tive prod­ucts such as green/social/sustainability linked bonds, loans, and ESG invest­ment funds.

Renoir Con­sult­ing can cre­ate the nec­es­sary frame­work and poli­cies to ensure these prod­ucts are issued in line with rec­og­nized glob­al standards.

For com­pa­nies that have already devel­oped sus­tain­able finance prod­ucts, we can pro­vide a sec­ond par­ty opin­ion ser­vice to inde­pen­dent­ly assess these prod­ucts to ensure they are aligned with agreed standards.

Stew­ard­ship

Stew­ard­ship is the respon­si­ble allo­ca­tion, man­age­ment and over­sight of cap­i­tal to enhance risk adjust­ed returns and cre­ate long-term val­ue for investors.

As part of this, finan­cial insti­tu­tions need to active­ly engage with their port­fo­lio com­pa­nies to encour­age them to adopt ESG best practices.

Renoir Con­sult­ing can help finan­cial ser­vices to under­stand which ESG top­ics are mate­r­i­al to each of their investee com­pa­nies and engage con­struc­tive­ly with those com­pa­nies to sup­port their sus­tain­abil­i­ty transformation.

ESG due dili­gence in Pri­vate Equity

Pri­vate Equi­ty com­pa­nies are embed­ding ESG into their invest­ment analy­sis and strate­gies and encour­ag­ing their port­fo­lio com­pa­nies to enhance their ESG performance.

Renoir Con­sult­ing con­ducts ESG due dili­gence on behalf of Pri­vate Equi­ty com­pa­nies to sup­port their invest­ment analy­sis and decision-making processes.

We can also ensure that investee com­pa­nies under­stand how they are impact­ed by ESG fac­tors and advise them on their ESG transformation.