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.