Need Of A Standardised Reporting Framework For Financial Institutions

By Author: Agile Advisors
Total Articles: 55
Comment this article

To achieve sustainable finance goals the banks must develop innovative products and harmonised frameworks across all banking activities that foster sustainable development ac. We as Sustainability Reporting Consultant in India feel that the lack of standardized reporting frameworks makes it difficult to identify and compare sustainable products and services across multiple banks.

According to the recently published benchmark study, most banks have a more sophisticated corporate green finance offering than retail green finance and this needs to be improved further. We as Sustainability Reporting Consultant in India saw that only 32% of the banks surveyed have developed green products for individuals while almost 80% have developed green bonds.

In our opinion as Sustainability Reporting Consultant in India the lack of common reporting formats makes it difficult to compare bank products across the globe. The study also identified that 95 percent of banks employ a different reporting style for product category and amount.
Upon reading the report we Sustainability Reporting Consultant in India can say that the ...
... banks from France and the United Kingdom are leading the way. The report further mentions that in Europe, French and British banks are at the forefront of the development of responsible products, these banks are also making substantial progress in enhancing disclosures to provide a clearer picture of the types of products offered and the quantities issued.

The report does highlight that there is still room for improvement in climate scenario analysis for risk management and disclosures for financial institutions. In our opinion Sustainability Reporting Consultant in India banks from both countries excel at aligning disclosures with Environmental, Social, and Governance (ESG) reporting standards and incorporating ESG risks into risk management frameworks which is great.

We as Sustainability Reporting Consultant in India believe that the Climate risk management will be improved through regional initiatives. In our opinion as Sustainability Reporting Consultant in India the growth of government initiatives, improvements in data availability, and the rise of new risk management approaches will make it easier for banks to set and report on sustainable finance goals make things more transparent and supporting decision making.

The implementation of the EU Taxonomy Regulation and the Sustainable Finance Disclosure Regulation (SFDR), would, among other things, improve the quality of disclosures in Europe and therefore support this green movement. In our opinion as Sustainability Reporting Consultant in India the expanding implementation of the Task Force on Climate-related Financial Disclosures (TCFD) guidelines in the United Kingdom, as well as climate stress testing in the United Kingdom in 2021 and Europe in 2022, will encourage banks to better manage climate-related risks and close data gaps while reporting their performance.

Further the United States' re-entry into the Paris Agreement, as well as the possible implications for local banking regulation and disclosure requirements, will likely support sustainability policies ion the US. We believe as Sustainability Reporting Consultant in India that more finance options will arise globally as countries work on post-Covid recovery and climate transition plans ahead of COP26. As a result, these should help to speed up responsible product development and increase reporting quality across all geographies thus making financial institutions efforts public.

Agile Advisors launched its operations in 2016 and has since rapidly grown globally. We have offices in UAE, Bahrain and India. Our team brings in a plethora of expertise in sustainability cutting across different sectors.