Can Banks’ Social Agendas Fuel Thriving Growth?

Banks have the opportunity to address social issues while expanding their business, according to a report from Boston Consulting Group. The report highlights that banks that perform well on environmental, social and governance metrics generate higher shareholder returns and have a lower cost of capital. However, many banks still struggle with implementing social agendas due to challenges in measuring value and defining goals. The report suggests that banks should focus on the most impactful issues, create a social agenda role and collaborate with external partners. The report also notes that there are important differences between social and climate issues, and that banks should approach these agendas differently.