Banks: Compet­itive advan­tages through sustain­ability training

Now more than ever, banks must ensure that their assets under management and business practices are in line with climate targets and that they develop sustain­ability strategies. What was “nice to have” a decade or two ago has become a “must-have”. The main reasons for this are not only the environ­mental challenges of our time but, above all, the related regulatory frame­works intro­duced to help us overcome them. Sustain­ability expertise is therefore increas­ingly becoming a decisive compet­itive advantage.

Important players in promoting sustain­ability

Due to their major influence on the real estate market, banks also impact the sustain­ability of properties – they are largely respon­sible for financing purchases, energy-efficient renova­tions, and the instal­lation of fossil-free heat gener­ators. This is no longer just about granting mortgages. Compre­hensive advice, partic­u­larly in the area of sustain­ability, is something that customers simply expect from their bank.

The respon­si­bility of the banks

Financial insti­tu­tions are aware of this respon­si­bility. The Swiss Bankers Association’s (SBA) Self-regulation in sustainable finance is one example of this, demon­strating that banks are prepared to play an active role in sustain­ability. By complying with strict sustain­ability standards, they are able to not only maintain their compet­i­tiveness but prove their commitment to respon­sible business practices and gain the trust of environ­men­tally conscious consumers and investors.

The role of the consul­tants

Consul­tants must have a solid knowledge of sustain­ability to assume their respon­si­bility effec­tively and support the company’s devel­opment toward a sustainable future. More and more financial insti­tu­tions are therefore actively training their employees in sustain­ability. This has many advan­tages:

• Attrac­tiveness for clients
  Clients, including real estate devel­opers and investors, are increas­ingly looking for financial partners who under­stand and support sustainable practices. Banks with sustain­ability expertise are better positioned to attract and retain environ­men­tally conscious clients.
• Added value
  Good sustain­ability knowledge enables employees to recognize the added value of environ­men­tally friendly properties or portfolios. These tend to generate lower operating costs, are less likely to be vacant, and, in many cases, have a higher market value. Altogether, this often leads to better credit perfor­mance for sustainable properties.
• Legal compliance
  Sustain­ability courses make it possible to keep up to date with constantly changing regula­tions and guide­lines on topics such as energy efficiency or building certi­fi­ca­tions and to ensure compliance with regula­tions.
• Green financing instru­ments
  Sustainable properties are exposed to lower risks and are therefore more resilient. For example, they are less affected by higher energy prices than properties with fossil fuels. With lower risks, sustainable buildings or invest­ments can be financed via green mortgages or green bonds, which offer more attractive interest rates.
• Subsidies
  Subsidies play an important role in financing sustainable real estate, but subsidy programs and their condi­tions are constantly changing. With regular training, a bank can ensure that its employees are always up to date and can provide customers with compre­hensive and expert advice at all times.
• Innovation and market leadership
  Sustain­ability training encourages innovation in real estate finance by supporting the adoption of green technologies and sustainable building practices. This can help a bank position itself as a market leader in green lending.
• Reputation and branding
  Banks that follow sustainable real estate practices can build a good reputation and a positive brand image, strength­ening their market position.
• Risk reduction
  Sustain­ability training in the real estate sector helps banks identify and manage environ­mental risks in their own real estate portfolios.

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