Banking Sector Champions ESG Compliance with Innovative Assessment Tool
In a significant move towards sustainable development, the Artemis Credit Bureau, alongside the Cyprus Banks Association and ICAP CRIF, is set to revolutionize the way companies adhere to Environmental, Social, and Governance (ESG) standards. This collaboration will utilize the Interbank Business Evaluation Project through Synesgy, a state-of-the-art digital platform, to assess and enhance ESG compliance among Cypriot companies.
Yiannis Tomasides, General Manager of Artemis Credit Bureau, recently outlined the project’s objectives. “By enabling Cypriot companies to evaluate their ESG performance themselves and through banks, we lay the groundwork for creating an ESG ecosystem in Cyprus,” he stated. This initiative not only promotes transparency but also encourages a sustainable business environment across the nation.
The evolution of sustainability since the 1980s has seen it grow from purely environmental concerns to include social and governance aspects. This holistic approach has significantly influenced investment strategies, with a PwC survey showing that 81% of private equity respondents report ESG matters to their Boards annually. Furthermore, 67% prioritize Sustainable Development Goals relevant to their investments, a notable increase from 38% in 2016.
McKinsey & Company has highlighted the importance of ESG considerations in business success, noting that strong ESG performance is linked to higher equity returns and improved credit ratings. The firm also identified five ways in which ESG contributes to cash flow, including fostering growth and reducing costs. However, they caution that ESG requires vigilant monitoring to prevent greenwashing—a deceptive practice that misleads about a company’s sustainability efforts.
Addressing the issue of greenwashing, Environment Commissioner Maria Panayiotou called for concerted action against this misleading practice during a forum in Limassol. She emphasized the negative impact of greenwashing on society, the environment, and the economy, urging businesses to commit to genuine sustainability.
The initiatives by financial institutions like Artemis Credit Bureau reflect a deepening commitment to building an ESG ecosystem in Cyprus. These efforts aim not only to bolster transparency and sustainability but also to ensure that corporate ESG endeavors are thoroughly regulated and genuinely impactful.
