Corporate Responsibility and Sustainability in Financial Services
More than the money’s green hereDOWNLOAD
Prompted by concerned investors, a large North American regional bank is laying plans to address environmentally and socially sustainable business practices in an effort to further its position in corporate responsibility.
The bank recognized that environmental and social sustainability was becoming a pressing issue with both investors and consumers. The trigger for action came when an institutional investment group initiated a shareholder resolution asking the bank to initiate a formal sustainability report and to develop a more detailed response to the Carbon Disclosure Project, a nonprofit group that compiles information about companies’ greenhouse gas emissions for use by investors.
Although the resolution was defeated, the bank’s management team decided that the growing interest in sustainability among investors and stakeholders made it important to align the company’s business priorities with sustainability drivers. Executives also wanted to explore opportunities to improve shareholder value and bottom-line performance through environmentally and socially friendly products and services. Finally, executives felt that anticipating sustainability issues subject to potential regulation and legislation would help the bank prepare for and proactively manage possible business and consumer implications.
The bank undertook a detailed study of the impact of its business on environmental, social and economic factors and benchmarked its current performance against stakeholder expectations in order to develop a sustainability strategy and a specific plan for action. With Deloitte’s assistance, the bank:
The bank’s sustainability activities have positioned it to grow revenue from new environmentally and socially sensitive product offerings, allowed it to reduce costs through operational efficiencies, and decreased sustainability-related risk in its investment portfolio. Additionally, the bank is now able to deliver a more detailed response to the Carbon Disclosure Project. In 2009, the bank also plans to prepare a report based on the G3 framework of the Global Reporting Initiative, a globally recognized coalition of businesses, nongovernmental organizations and other concerned organizations that supports disclosure of corporate sustainability activities.
As used in this document "Deloitte" means Deloitte LLP (and its subsidiaries). Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte and its subsidiaries.