As global banks are gearing up to adopt ESG models, the next big step is sustainable finance says Alvarez & Marsal

As global banks are gearing up to adopt ESG models, the next big step is sustainable finance says Alvarez & Marsal

NatWest tops list of European and US banks that are capitalising on net zero transitionopportunities

Analysis by Alvarez & Marsal says UK banks are outperforming their European and US peers on the transition to net zero

Dubai – Global professional services firm, Alvarez & Marsal (“A&M”), has published the findings of the inaugural Green PACE rankings, proprietary research that ranks how the top 25 European and North American banks are capitalising on sustainability as a business opportunity.

Global banks today are complying with regulatory, investor and rating agency expectations as they go green. Maximizing financial benefits from ESG in a highly competitive environment will require banks to deploy a broad offering of sustainable finance and investing products, and articulate credible net zero plans for emissions financed. They will also need to adopt client orientation to transition planning and accompany clients in the operational journey by fully embracing innovation and digitalisation.

Revenue pool breakdown by region shows Europe and North America will represent 46 percent of the total revenue pool, or €135 billion, driven by more ambitious pledges by 2030 than Asia. The ESG revenue opportunity represents an incremental 10 percent of current revenues for banks in Europe and North America.

The report found that UK