Experts call for financial institutions to integrate ESG principles

A panel of industry experts recently highlighted the importance of environmental, social, and governance (ESG) for the banking sector while addressing the need for financial institutions to integrate ESG principles into their operations.

Taking place during a recent event organised by KPMG in Cyprus entitled ‘ESG Shaping the Economy,’ the panel was made up of Constantinos Herodotou, Governor, Central Bank of Cyprus, Irene Piki, Deputy Minister to the President, Tim Schabert, Partner, Risk Consulting, KPMG in Austria, and Eleni Neocleous, Board Member, Risk Consulting, KPMG in Cyprus, acting as the moderator.

The panellists discussed critical aspects of ESG and market practices and offered diverse viewpoints on the way forward. They stressed again the importance of ESG for the banking sector while addressing the need for financial institutions to integrate ESG principles into their operations to drive change and sustainable and responsible practices within the industry.

During the 15 May event, Christos V. Vasiliou, Managing Director, KPMG in Cyprus, also reaffirmed KPMG's commitment to integrate ESG perspectives and to lead by example. He also outlined the growing importance of ESG for businesses and the banking sector.

Antonis Bargilly, Board Member, Head of Management Consulting and KPMG ESG, KPMG in Cyprus and Eva Solomontos, Manager, Risk Consulting and KPMG ESG, KPMG in Cyprus, during an informative presentation shared their insights on current regulatory updates, the impact of the financial sector, as well as challenges and opportunities arising with the integration of ESG priorities in businesses' operations.

Herodotou, meanwhile, discussed the fundamental role ESG has in shaping the financial industry, highlighting the Central Bank's commitment to sustainable and responsible banking, stability, transparency, and long-term value creation.

On his part, Schabert, presented valuable insights emphasising the significance of incorporating sustainable practices into banking operations and highlighted key European market observations for integration of ESG into bank management and green banking products.