Environmental, social and governance (ESG) solution

OneSumX for ESG and Climate Risk Management enables banks to create an effective Environmental Social and Governance strategy. Empowering you to embed sustainability considerations into your business models and risk management framework.

Our solution covers the impact analysis of Physical and Transition Risk, the application of Climate Scenario Analysis to financial risk, emissions outputs and stress testing, ESG Disclosures Reporting and KPIs, Taxonomy Alignment and Energy Performance Mapping for Real Estate and Mortgage Portfolios.


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Identify & quantify risk

Assess and incorporate the impact of physical and transition risks, climate scenarios, modeling, and stress-testing into decision-making and long-term planning.
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Consolidate data

Map and enrich qualitative and quantitative environmental, taxonomy and climate data into a single regulatory data feed.
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Reports at your finger tips

Report ESG KPIs and disclosures with confidence and ease with a library of out-of-the-box and customizable reports.

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Gain actionable insights

Combine ESG, financial and regulatory data in an integrated way to uncover risk, capture insights and drive business value.

Sustainable finance explained

As a subset of wider ESG thinking, Sustainable Finance aims to integrate ESG criteria into financial services, to support sustainable economic growth. It looks to increase awareness about mitigating ESG risks and creating a sustainable finance strategy. This should consider the long-term nature of such risks including the uncertainty of their valuation and pricing.
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Sustainable finance challenges

For many financial institutions, how to approach and execute an adequate Environmental, Social, and Governance (ESG) strategy is an open question that is rapidly becoming a key business driver. Firms seek to adjust their business strategy and pave a sustainable pathway toward net-zero and transition readiness.

Climate risk is clearly an area of concern and action, but it remains unclear what exactly financial institutions must do and how they should go about it.

Understanding requirements
Banks must understand their obligations in a fast-changing regulatory environment. They must navigate this new terrain, gather and collate the data needed, and implement the IT infrastructure to define, meet, measure and report on sustainable finance goals.
Reputational risks
Regulators have made it clear that greenwashing is now a 'material risk'. Without appropriate governance and oversight, banks can face reputational risk if not seen to be taking appropriate steps towards a more sustainable and greener future.
No standardized approach
Countries and institutes currently converge their methodologies and policies to combat the climate crisis, meaning no standardized approach. As data quality, new technology and climate literacy increase over time, firms must take a flexible approach now, as policies, requirements and methods evolve.

OneSumX for ESG solution features

Manage climate risk impact, increase transparency and report ESG disclosures with confidence.

Free up resource and operational costs with our on-cloud or on-premise solution, that allows you to identify and assess the impact of physical and transition risks, climate scenarios, modelling, and stress-testing into decision-making and long-term planning. Plus, ensure operational control with full audit trails and ‘drill down’ capabilities. The specific modules and their individual features for navigating ESG risks are listed below.

  • Climate risk impact assessment

    • Evaluate the impact of climate transition risk, and physical risk on your banking portfolio
    • Evaluate the impact of alternative climate stress tests, scenarios and simulations based on NGFS or customized scenarios
    • Create efficiencies and reduce risk by using advanced calculation libraries in accordance with regulatory rules to calculate:
      • Net Present Value of emission reduction plan
      • Top down (macroeconomic) assessment of the transition impact for financial risk like RWA, ECL, stages, ICAAP
      • Bottom-up approach (Merton) assessment of individual counterparties for credit risk
      • Carbon spread pricing (FTP)
  • ESG data management

    • Gather, establish targets, and track emission data over time while producing relevant KPIs, including financed emissions and emission intensity. Apply pathway scenarios and set relevant targets for portfolio and counterparty emissions.
    • Energy Performance mapping for real estate and mortgage portfolios.
    • Evaluate, monitor and manage the EU taxonomy process for your bank’s portfolios.
  • ESG disclosures reporting

    EBA KPI reports
    • Green Asset Ratio (GAR) for ESG disclosures reporting
    EBA Pillar 3 ESG risk disclosures
    • Transition risk
    • Physical risk
    • Green Asset Ratio (GAR) and Banking Book Taxonomy Alignment Ration (BTAR)

Speak to our experts about our ESG and Climate Risk Management solution

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