A clear framework outlines mechanisms and pathways that unlock more capital to ensure the climate transition is not only green but also equitable.
BCG’s Approach to Sustainable Finance and Investing
BCG helps banks, asset managers, and other financial institutions create competitive advantage in sustainable finance and investing. Here are just some of the ways we help clients:
- Unlock business value through enterprise-wide sustainable investment strategies.
- Set ESG and sustainable finance targets, conduct benchmarking and scenario planning, and implement ESG and sustainable finance roadmaps.
- Develop social and sustainable finance frameworks and sustainable finance strategies.
- Identify and pursue high-impact sustainable investing opportunities that capture market share across environmental and social categories.
- Identify and quantify the relationship between valuation multiples and ESG scores.
- Unlock the potential of carbon markets.
- Set net-zero targets for greenhouse gas emissions across portfolios and financial activities using CO2 FI, BCG’s proprietary measurement tool for financial institutions.
- Build forward-thinking ESG data and reporting capabilities, and effectively respond to demands from regulators, standard setters, and other stakeholders.
- Establish a target operating model to deliver on sustainable finance and investing ambitions.
- Tailor sustainable finance solutions to corporations to help CFOs steer the sustainability journey and adapt to sustainable investing trends.
Our Clients’ Success in Sustainable Finance and Investing
A global bank set an ambition to become a leader in sustainable finance and investing by 2025. BCG identified and sized commercial opportunities, developed a sustainable finance framework and strategy, and created a two-year roadmap for execution. The bank doubled the size of its original sustainable finance and investing ambition and is on track to become a market leader in sustainability.
One of the biggest asset management companies in the world set a three-year goal to integrate ESG into all of its investment decisions. BCG identified the capabilities needed to become an ESG leader, designed a methodology framework for net zero, and set up a project management office to run 12 workstreams. The company translated its ESG ambitions into concrete, quantified ESG commitments and implemented a set of robust net-zero targets.
A global bank committed to reducing emissions from its lending and investment portfolios to achieve net zero by 2050. BCG established climate transition frameworks for high-emitting sectors, developed a methodology for facilitated emissions, and shaped the bank’s roadmap to net zero. The bank announced an ambitious net-zero strategy, including commitments to reduce financed and facilitated emissions, and is now a leader in climate and sustainability.
Our Insights on Sustainable Finance and Investing
Article
October 23, 2024
The 2024 report reflects data from over 6,000 PE-backed companies, offering new insights on how sustainability in the private markets has evolved over the last year.
Video
October 21, 2024
Financing to Meet Global Challenges
The field of climate finance has come a long way in recent years, but questions remain about the market for investment in climate mitigation, adaptation, and resilience—even as demand for capital continues to grow.
Article
April 18, 2024
A recent global survey reveals that insights gained from assessing sustainability topics are crucial for preserving and enhancing the value of M&A deals.
Article
March 15, 2024
Addressing the crisis in the natural world requires an estimated $1.2 trillion in annual private sector investment. Institutions that act next can gain business advantages.
Video
May 10, 2024
Seizing the Sustainable Finance Opportunity
Yana Watson Kakar of CDPQ discusses the $200 trillion opportunity in sustainable finance—and how capital can be deployed to advance the energy transition.
Meet Our Sustainable Finance Consulting Leadership Team
BCG’s sustainable finance consulting team has deep expertise in sustainable investing and sustainable and social finance. Here are some of our experts in sustainable investing consulting.
