Fit-for-Purpose and Effective Environment, Social and Governance (ESG) Management: ESG Implementation Challenges, Concepts, Methods and Tips for Improvement

Abstract

This chapter explores the investment bank structure and the optimum approaches to integrate ESG into the credit risk process. The chapter also discusses key elements of building the business case for both why ESG is important and the need for closer oversight and integration into the “business-as-usual” process. It also explores how leadership, governance and culture can, or rather should be, created and maintained such that the successes of ESG integration once complete are not diminished through time. The chapter is written in the first person, drawing from the author’s risk management experience over the past decade, without reference to specific institutions to allow more open expression of core issues and challenges, providing valuable tips and techniques to achieve successful change programmes.