ESG criteria and especially climate change will determine from now on the investment interest for large companies, as well as their relation with banks.
The 150 largest clients of the four systemic banks, as well as Pancreta and Attica Bank, will be forced to reply to 100 questions related to ESG (Environmental, Social and Corporate Governance) practices, as the risks of climate in combination with corporate governance will be the main evaluation criteria for business financing.
The way in which banks now evaluate businesses and the risks arising from their relationship with them will be decisive factors for their capital assessment by the supervisory authorities.
Environmental regulations and climate change are becoming an intractable issue both for businesses themselves and for credit institutions and require strict management rules.
The 150 largest corporate clients of each bank will be invited by their credit institutions to be assessed based on sustainability criteria. These criteria evaluate the effects of business operations on the environment and society, while at the same time the corporate governance applied by the specific companies will be evaluated.
The companies’ cost of capital is inextricably linked to how they operate and how businesses assess risk. The incorporation by the companies of the above criteria in their operation creates on the one hand strong profitability, while on the other hand it limits the relative risks both for the companies themselves and for their investors.
