ESG and the product operating model in finance

The purpose of ESG and the product operating model in finance

ESG is a mechanism to transparently communicate how organizations are operationalizing their sustainability agenda. It reflects the broad set of environmental and societal risks, opportunities, and disrupters by which an organization manages, measures, and communicates its performance. ESG has become important to financial services institutions as they experience increasing levels of environmental risk, changing societal norms, and demand from customers, employees, investors, and regulators.

A product operating model helps align organizational goals and customer needs by solving complex problems in iterative cycles that adjust to ever-changing market situations. It can help ensure end-to-end accountability, transparency, and security across the product life cycle.

Embedding ESG thinking into the product operating model

As a product operating model-driven delivery approach replaces the traditional project-driven approach across financial institutions, product and technology leaders should look at embedding ESG across the end-to-end product life cycle. This could help strategically prioritize the product stages to maximize impact while following an experiment-driven, iterative approach to ever-evolving goals.

Prepare for the future with an ESG strategy framework

Millennials and Generation Z are poised to become the overwhelming majority in the workforce. Gradually, there will be a transition of leadership from baby boomers to millennials. The younger generations believe business leaders play a crucial role in addressing the social and environmental issues.

These two generations have already started taking actions in their lifestyle choices for a sustainable future. The spillover of their mindset will be felt in their corporate actions, and the collective influence of these generations will shape the ESG agenda for the next decade.

The time to get started is now. Gain further insights into ESG and product operating model integration in our full report.