November 16, 2021 | Stamford, CT — Banks that move slowly on sustainability are at risk of falling behind more proactive rivals and may lose business with important corporate clients.  

Companies around the world are introducing ESG and sustainability goals into corporate finance and treasury functions. As they do, corporate banks have a valuable opportunity to deepen client relationships and win new business by helping companies understand the role ESG can play in these functions and advising them on how to implement ESG standards. 

Corporate banks seen as lagging their peers on sustainability issues could find themselves at risk of losing business. In a recent Coalition Greenwich study, nearly 30% of European companies report they consider ESG capabilities when allocating their banking business – up from less than 1 in 5 companies just two years ago. Among the largest companies in Europe ($10 Billion turnover and above), 40% consider ESG when allocating their banking business. Similar considerations are observed in the U.S. (21%) and Asia (27%) and Coalition Greenwich projects a steady increase across these geographies.  

“Banks that move quickly can build a long-term competitive advantage as many companies begin considering ESG policies and practices in the allocation of their corporate banking wallets,” says Melanie Casalis, Coalition Greenwich Senior Relationship Manager and co-author of For Corporate Banks, the Clock is Ticking on ESG and Sustainability. 

For Corporate Banks, the Clock is Ticking on ESG and Sustainability examines the evolution of ESG and sustainability in corporate finance and treasury functions among large corporates globally and provides a series of recommendations banks can take to assist their clients in implementing ESG and sustainability into these functions as well as across their organizations.

“Beyond green bond issues and a handful of other sustainable finance vehicles that have gained some level of popularity, many corporate CFOs and treasurers remain uncertain about exactly what ESG means for their departments,” says Aaron Finnegan, Coalition Greenwich Research Manager and report co-author. “That’s where banks can and should be helping.”