Beyond balance sheets: The ESG imperative for GCC banks' future
Exploring the critical role of ESG factors in shaping the future of GCC banks and driving sustainable growth.
Discover how ESG factors are reshaping GCC banks' operating models. Our perspectives document, "Beyond Balance Sheets: The ESG Imperative for GCC Banks' Future," explores the transformative impact of ESG on sustainable growth and the future of banking in the GCC.
The banking industry is experiencing a transformational shift with Environmental, Social, and Governance (ESG) principles transitioning from a mere consideration to a disruptive force that is shaping the future of banking.
ESG has emerged as a critical driver of sustainable growth and a key factor in transforming the operations of banks worldwide. To remain competitive in today's market, banks must align their traditional practices with emerging ESG imperatives. Failure to do so risks losing market share, reputational damage, and regulatory scrutiny.
This POV provides an analysis of how ESG is expected to shape the layers of banks’ operating models in the GCC towards a more sustainable and responsible future. It includes a benchmark using nine (9) maturity metrics to measure maturity against major global banks, highlighting the need for GCC banks to take proactive steps towards incorporating ESG principles into their strategies and operations.
The analyzed sample includes 29 based GCC banks that have published their ESG reports while the sample of global banks selected comprises 37 European banks, 8 North American banks, 3 Asian banks, 1 Australian bank, and 1 African bank.
