Responsible investment: an increasingly important consideration for Financial Institutions and Major Projects

In a rapidly changing world, concerns about climate change, resource scarcity, social impact and chronic pollution are increasingly material to long-term investment decision-making. As a result, access to finance, whether debt or equity, now comes with broader governance expectations than ever before. The social, environmental and ethical responsibilities of cash are increasingly important for commercial banks, private equity funds and major projects.

Debt or equity? Arcadis reviewed the sustainability practices and reporting of 50 leading financial institutions (both banks and equity investors) across the US and Europe. Our research found that cash used for debt provided by the global banks had more of a ‘conscience’ than the investor’s equity, with higher levels of Environmental, Social and Governance (ESG) reporting and transparency.