ESG Integration

Perspectives

ESG and the product operating model in finance

Unlocking sustainability with an ESG strategy framework

The financial sector has become a pivotal player for sustainable change in the global ecosystem—not only ethically, but as a strategic necessity. Discover how integrating environmental, social, and governance (ESG) into the product operating model can help with risk mitigation, resilience, and long-term value creation for sustainability 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.

ESG intervention in the product operating model

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.

ESG and product operating model integration use cases

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.

Get in touch

Principal

Deloitte Consulting LLP

tdaru@deloitte.com

Senior Manager

Deloitte Consulting LLP

vasathe@deloitte.com

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