Today, Reply’s event brought together key players from leading financial institutions to explore how sustainability is reshaping the industry. Jane Moeys from Euroclear, Jo Wuytack from Degroof Petercam, and Philippe Wallez from ING shared their insights on embedding sustainability into their operations. The event was opened by Frederic Gielen, Reply’s executive partner for financial services, who welcomed the attendees. David Suetens, our senior advisor, led the discussions in a panel format, guiding the conversation on the evolving role of Chief Sustainability Officers (CSO) and the integration of Environmental, Social, and Governance (ESG) strategies across business lines. Last but not least, the changing role of relationship managers in this new landscape was presented by Karine Szotowski, Manager for sustainable banking.
Throughout the event, speakers emphasized how sustainability is becoming central to their organizations’ strategies. One institution, for example, established its Sustainability Office in 2018 with a direct reporting line to the CEO, signaling a strong commitment to making sustainability a core part of its business strategy. Another firm followed suit in 2021, again ensuring that the office reported directly to the CEO. A major player with over two decades of sustainability efforts has expanded its ESG oversight, with ESG leads in every country of operation and a dedicated team at the group level – demonstrating that ESG remains a key focus area with direct access to leadership and frequent board interaction.
The role of the CSO is growing in importance, with a poll taken during the event showing that 85% of participating organizations already have a Chief Sustainability Officer, and another 10% are planning to create the position soon. This trend reflects a broad recognition that dedicated sustainability leadership is crucial for driving long-term business transformation. Sustainability should be embedded across all business lines, with more tailored products and services to meet sector-specific ESG needs. This shift is meant to ensure that sustainability considerations are not siloed but are an integral part of every operation.
A focus on sustainable investments is also taking hold, with institutions providing comprehensive training for client-facing staff. This enables relationship managers and private bankers to provide clients with sustainable investment opportunities, ensuring that sustainability is integrated into the client engagement process. Some firms are leading the charge by prioritizing green bonds and sustainable debt issuance, incorporating ESG ratings into their services to drive further progress in sustainable finance. Sustainability is also deeply integrated into investment portfolio decisions, with exclusions applied to certain investments that do not meet ESG criteria. The focus on green bonds is growing, as firms seek to align their growth strategies with environmental goals. In fact, sustainability can become central to the profitability model, with business decision evaluated through a balanced consideration of cost, revenue, and sustainability. The CSO plays a critical role in ensuring that financial transitions are aligned with long-term ESG objectives, while also coordinating with other internal stakeholders.
Balancing regulatory compliance with strategic sustainability objectives was another key theme discussed during the event. A poll revealed that 57% of represented companies focus on sustainability from both a strategic and regulatory perspective, while 33% prioritize the regulatory aspect. Larger organizations are striving to balance both, while smaller institutions often begin with a focus on meeting regulatory requirements. This balance is especially important as new regulations, such as the Corporate Sustainability Reporting Directive (CSRD), place additional pressures on resources. However, this regulatory framework is also viewed as a catalyst for broader strategic progress in sustainability: by defining stable norms, the framework allows financial institutions to adapt their internal processes and governance structure.
The impact of customers’ expectations regarding sustainability was discussed as well, with larger corporate clients increasingly pushing for sustainable practices, while retail clients may be more hesitant due to concerns about profitability. The panel highlighted that, moving forward, financial institutions must find ways to address both sets of client needs without compromising their sustainability goals. Relationship managers are also tasked with understanding sustainability as part of their client engagement, reflecting a significant change in how financial institutions operate. This transformation is set to continue, with collaboration and innovation seen as key drivers of progress. External expertise is becoming a vital part of navigating the complexities of new sustainability regulations like the CSRD. Many institutions are turning to consultants and data providers to ensure they meet compliance requirements in time and streamline their sustainability reporting. This external support allows them to focus on implementing the necessary changes without overwhelming internal teams.
Today, it is clear that sustainability is not just a compliance issue but a necessity for future profitability and growth. As the financial sector continues its journey towards sustainability, collaboration, shared commitment, and innovation will be essential in shaping a greener, more sustainable future for all.