| Abstract |
The purpose of the study is a structural analysis of sustainability risks by components, taking into account the specifics of the banking business. The main results of the study are the streamlining of approaches to the systematics of ecological, social, and managerial risks, proposals for creating an additional mechanism for managing such risks, and determining the key role of the supervisory authority in encouraging banks to transform. Ukrainian banks are still at the beginning of the path to a full-fledged business model based on the principles of sustainable finance. The culture of risk management requires unification and a free transfer of experience between banks and supervision in the dissemination of good practice. There is no need to create a new organizational structure within the bank, but it is enough to enrich all three lines of risk protection with new functions and responsibilities. Today, too much attention is paid by the banking community, regulators and analysts to climate risks. The least developed in terms of methodology remains the component of corporate governance, as a result of which it is perceived as artificially attached to environmental and social aspects. Integration of ESG in banks' strategies and investment policies means an offering of ESG-related products (sustainable, green, and social bonds, green project finance etc.) for the markets. There is a danger of withdrawing debt capital from industries that are recognized as "dirty", but where the owners of the business are trying to really clean them up by modernizing technologies. Therefore, a practical solution for a modern bank is not simply a refusal to finance certain sectors of the economy, but to a greater extent a reorientation to projects that involve energy saving and energy efficiency, reducing emissions of greenhouse gas into the atmosphere, declining consumption of water and other resources. |