Analyze your portfolio’s baseline emissions using a combined top-down and bottom-up approach. Then measure and map the reductions required to meet your decarbonization ambitions.
Portfolio optimization
Mitigation and client engagement
Data scaling and monitoring
Determining emissions
targets
Determining emissions
targets
Data scaling and monitoring
Mitigation and client engagement
Portfolio optimization
Client-level sustainability data can be limited, especially regarding emissions factors among small and medium-sized enterprises. Companies can supplement it with data from automated sensors, transaction records, external vendors, and industry groups.
Decarbonization of a loan portfolio requires new pricing approaches, new and convincing narratives for clients (such as offering advisory services), and consistent and scalable client engagement on sector-specific initiatives.
Carbon transition can increase portfolio profitability, partly through the correlation between sustainability and lower risk. Banks can strategically adjust their portfolios, potentially off-boarding some existing clients and adding new ones.
Source: Bain & Company