Financial Services

As ESG (Environmental, Social, and Governance) legislation continues to expand, companies in the financial sector must ensure compliance with areas like ethical labour practices and sustainable investing. Existing reporting standards, such as the Sustainable Finance Disclosure Regulation (SFDR), already require financial services to produce sustainability reports for investment managers in the EU. This initiative aims to increase transparency regarding how financial market participants consider ESG risks in their investment decisions.

With additional EU reporting standards and frameworks set to be introduced this year, financial services will face even more requirements. The Taskforce on Nature-related Financial Disclosures (TNFD) and the Partnership for Biodiversity Accounting Financials (PBAF) will become increasingly significant. These frameworks encourage financial institutions to incorporate biodiversity factors into their lending and investment strategies, supporting global efforts to enhance nature-related disclosures. Similarly, the UK’s Financial Conduct Authority (FCA) is expected to further develop its ESG disclosure requirements, particularly concerning the management of climate-related financial risks under the Task Force on Climate-related Financial Disclosures (TCFD) framework.

The European Green Bond Standard (EUGBS) is also anticipated to become a key tool for financing environmentally sustainable projects, providing a voluntary but strict framework for green bonds. Compliance with the EUGBS will assure investors that the funds raised genuinely support green initiatives, aligning with the objectives of the EU’s Green Deal.

A photo of a coal plant at dusk. Smoke spouts from a chimney in the background while heaps of dirt lie in the foreground.

The Challenge

Extensive ESG frameworks and the reporting requirements that come along with them present a challenge for financial services as they must adapt their internal processes, governance structures, and data management systems to ensure compliance.

Beyond meeting regulatory obligations, organisations also need to demonstrate genuine commitment to issues such as sustainable investing and diversity to satisfy investor and stakeholder expectations. This could include divesting from industries with high environmental impact, such as oil or coal, and hiring more women and people of colour into senior positions.

Failure to align with these evolving standards could not only result in financial penalties but also damage reputational standing, potentially diminishing market competitiveness.

Our Solution

Unannounced Supplier Inspections

Ground Truth Reporting gives you insight into your business by carrying out unannounced site inspections to identify if ESG standards are being met.

Independent Verification and Credibility

As an independent third-party, we provide objective reporting that is crucial for building trust with regulators, investors, and consumers.

Tailored Solutions

Whether you are concerned about ethical investment practices or the working conditions of your employees, VICTVS provides targeted solutions that address these specific concerns.

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The Outcome

Ground Truth Reporting serves as a critical tool for financial services aiming to meet both existing and ESG reporting standards. By offering real-time, accurate insights into environmental practices, social standards, and governance, Ground Truth Reporting enables companies to meet compliance and reporting challenges head-on.

Our comprehensive solution will provide you with the independent verification and detailed insights necessary to navigate these growing requirements successfully.

By partnering with VICTVS, companies in the financial sector can exceed compliance while also enhancing their reputation as responsible and ethical businesses, ultimately leading to greater consumer trust, resilience, and long-term success.

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Independent Inspectors

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Source of Truth

What our Clients Say

“Ground Truth Reporting by VICTVS has been invaluable in helping us identify and verify ethical investment practices within our portfolio. By providing independent insights, it allows us to assess our ESG performance more accurately, ensuring all aspects of our business align with our ethical standards.”

C Cornforth, Compliance Officer

Find out how Ground Truth Reporting can help you.

For more information about our work with the Fashion and Retail industry, please contact us here.