The Financial Services sector is going to be key to delivering COP26 targets

Welcome to our series exploring the four key themes emerging in our work with our financial services clients. 

In Part Two, we discussed omni-channel customer experience. In this article, we’ll discuss why the FS sector is going to be key to delivering COP26 targets.

The approach of the Financial Services sector to ESG was given a further jolt at COP26, as private finance was highlighted as a key enabler needed to move us to net zero by 2050. This was followed swiftly by a range of sustainable finance initiatives such as the UK’s Greening Finance Roadmap (1). We will also see further regulations coming into effect in 2022, for example Climate-related Financial Disclosures reporting for large asset managers (2), as well as the preparation for wider disclosure obligations at the start of 2023.  

To address these new regulations and support the COP26 targets, firms need to ensure that their people believe their action can contribute directly to the organisation’s sustainability goals. One way to achieve this is by giving managers and team leaders autonomy to develop strategies to meet their specific requirements and encourage decisions to be made on upskilling or talent acquisition. Employees can also act now by asking challenging questions of their employers. To learn more, take a look at the article our colleagues Emily and Joe wrote entitled “Five key questions to ask your business following COP26”.  

At Moorhouse, we have worked with organisations such as the Department of Digital, Culture, Media and Sport, to promote and develop impact investing in the UK and internationally. We have also been on our own ESG journey in recent years, making sustainability and social value key considerations in our own decision-making processes. We believe that it is imperative to build an operating model that goes beyond the regulatory standards. It also needs to address the people, processes and technology required to deliver a sustainable strategy that meets business goals. 

Key considerations:  

·   Is your organisation prepared for the ESG regulatory requirements coming in 2022 and 2023? 
·   Are you going beyond the regulations to address the more sustainable needs of all our stakeholders?


Look out for Part Four next week, where the series will conclude by investigating how clients can maximise value from transformation. 


Sources:  

  1. https://www.gov.uk/government/publications/greening-finance-a-roadmap-to-sustainable-investing   
  2. https://www.fca.org.uk/news/news-stories/new-rules-climate-related-disclosures-help-investors-clients-consumers  

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Bill is an enthusiastic and driven management consultant who is passionate about helping clients solve complex problems.

Bill Jennings Junior Consultant
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Andrew specialises in leading complex projects and programmes. He has a strong track record of end-end programme delivery in various highly-regulated industries.

Andrew Sheehan Principal