Emissions controlESG to remain top of mind for treasurers in 2023

ESG to remain top of mind for treasurers in 2023

Standard Chartered’s Karen Hom reflects on some of the biggest challenges of 2022, and highlights what treasury teams will focus on in the year ahead

The treasury function, and finance teams more broadly, have a critical role in helping the business it serves to play a part in building a more sustainable future.

When considering sustainability within treasury, most think of the climate footprint of supply chains, as well as ESG investment and green financing.

However, in the latest episode of The Global Treasurer’s Future in Focus series, Standard Chartered’s Karen Hom touched on the ‘people side’ of sustainability.

“Resourcing constraints that we have been managing since the pandemic has meant that having a diverse team has also become part of the sustainability agenda,” she says.

Throughout 2022, sustainability was a core topic for many treasurers and is likely to be top of mind over the next 12 months as well.

“Sustainability, as a core business consideration, continues to gather pace as the world faces significant climate and environmental challenges,” Hom said. “There’s an imperative to invest, find solutions, and support a just transition to net zero.”

Within its own strategy, Standard Chartered has committed to be net zero in its own operations by 2025, and across its financed emissions by 2050. To accelerate this work, it appointed its first chief sustainability officer, in 2022.

The bank has also dedicated a large part of its lending to sustainability projects. Hom says these are not isolated to lending products, but asset products aimed at helping its clients meet their financial targets, also.

“We remain committed to providing access to sustainable fuel sources, and helping our clients around the world to become more sustainable, protect the environment, and have access to secure and reliable supplies,” Hom said.

 Greater pressure

A large portion of treasury teams’ efforts around sustainability will be focused on climate reporting. In the US, policymakers are considering implementing new sustainability reporting requirements.

“From a monitoring point of view, our treasury functions face more pressure,” Hom said. “As targets get put into things like the revolving credit facilities, treasurers need to find metrics to monitor and report on.”

Hom also noted that as targets become more embedded within corporate culture and global business models as both client aspirations and regulatory expectations continue to grow.

INDEX:

00:00 Introduction

00:55 2022 – the greatest challenges

03:20 Importance of sustainability and ESG

07:00 Navigating economic uncertainty

09:00 Leveraging technology for client success

13:00 Remaining at the forefront of payment innovation

14:35 Keeping up with cross-border regulation

 

 

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