Powered by MOMENTUM MEDIA
subscribe to our newsletter

Climate change becoming 'top concern': BNP Paribas

Over half of financial services executives have identified environmental, social and governance (ESG) issues as the top concern over the next decade, according to a new survey by BNP Paribas.

The bank surveyed 115 'senior and experienced bankers and corporate executives' in its Banking in a Decade report.

Excluding finance, the survey found that 19 per cent of respondents thought climate change/'ESG concerns' was the most concerning issue in 2015.

However, 52 per cent of finance executives expected ESG/climate change to be the most concerning 'ex-finance' issue by 2025.

"Fifty-two per cent of corporate leaders expect ESG to be the top concern for their business in a decade, while over a third of finance sector leaders rated it as significantly increasing in importance," the report said.

Advertisement
Advertisement

"Accordingly, local financial institutions and their corporate clients alike will have to better consider ESG elements, not just to meet the market, but also because it is good business risk management.

"The social and governance aspects of a business can have as dire, if not more so, impacts as environmental ones."

The next most pressing non-finance issues in 2025 were expected to be 'keeping pace with technology developments', 'stressed infrastructure' and 'government' issues, according to the report.

When financial concerns are included in the mix, 55 per cent of respondents named 'economic shocks in domestic or global markets' as their expected top concern in 2025.

This was followed by 'delivering sustainable returns to shareholders and business owners' and 'national economic growth'.

PROMOTED CONTENT


"The majority of Australian financial institutions expect the global economy to maintain current levels, with 80 per cent prepared for a period of comparatively low growth," BNP Paribas said.

"Corporate leaders are less optimistic. A quarter expect global economic growth to be well below historical trend at decade’s end. Only three per cent expect it to be well above trend. Overall, almost two-thirds expect little change from current levels."

Climate change becoming 'top concern': BNP Paribas
mortgagebusiness

Latest News

Risks to financial stability could be building as house prices and debt levels keep rising, the Reserve Bank has cautioned. ...

The big four bank has unveiled its response to past regulatory issues, a program meant to improve its risk management and accountability.  ...

The proposed acquisition of Westpac PNG and Westpac Fiji by Kina will no longer proceed, it has been confirmed. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.