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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