Sustainability & ESG

Regulatory Developments and Strategic Integration

ADVANTA – Your Partner for ESG Regulations. Reporting. Data Strategy and Risk Management.

Managing Sustainability Strategically
– Efficiently, Securely and Effectively

Cloud Security

ESG regulation is
complex and
time-consuming.

BSI C5

We support you in
a strategic,
efficient implementation.

Success

This helps you reduce risks,
build trust and secure
competitive advantages.

Latest News

Regulation

Omnibus Procedure

On 26 February 2025, the European Commission presented new proposals to simplify sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD) and to streamline due diligence requirements under the Corporate Sustainability Due Diligence Directive (CSDDD). The so-called "Omnibus Procedure" aims to reduce bureaucratic hurdles for companies and to selectively narrow the scope of reporting obligations. But what specific changes are planned, and which companies are affected?

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Risk Management

EBA Guidelines on ESG Risk Management

In light of the growing relevance of environmental, social and governance (ESG) risks in the financial sector, the European Banking Authority (EBA) has published the EBA Guidelines on ESG Risk Management. These require banks to systematically integrate ESG risks into their risk management frameworks. The tightened requirements apply not only to large banks, but also to smaller and less complex institutions.

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Strategy

Transition Plans

The ecological transition is no longer a distant future vision — it is already a reality. With the European Green Deal, the European Union is pursuing the goal of becoming climate-neutral by 2050. For companies, and especially for financial institutions, this means that sustainability is becoming a corporate obligation. In this context, so-called transition plans are gaining significant importance.

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Data

ESG Data Strategy

Increasingly stringent regulatory and legal requirements such as the CSRD, along with supervisory expectations, are putting pressure on banks and companies to provide reliable ESG data. However, both internal and external ESG data face significant limitations — internal data is often unavailable, while external data frequently relies on non-transparent methodologies or estimates. A structured ESG data strategy is therefore becoming essential to set priorities, improve data quality and make trustworthy information actionable.

Do you need support developing an ESG data strategy?

Contact Us
Regulation

In the Regulatory Spotlight

In May 2025, both BaFin and the ECB emphasised their supervisory priorities regarding sustainability. While BaFin's Sustainable Finance Conference on 9 May focused primarily on physical climate risks and specific disclosure requirements, the ECB's speech on 22 May placed particular emphasis on the importance of biodiversity, robust data structures and regulatory simplification — always with a view to financial stability and risk management.

Would you like to address regulatory ESG requirements in a targeted way?

Contact Us

At the Intersection of Politics,
Regulation and the Environment

Political Challenges

EUROPE

High ambitions, but under pressure with the goal of regaining competitiveness and simplifying sustainability regulation

USA

Withdrawal from the Paris Climate Agreement and regression in climate regulation

Environmental Facts

6 out of 9 planetary boundaries were exceeded in 2023

The global average temperature exceeded +1.5 °C for the first time in 2024

Climate disasters caused damages of $320 billion in 2024 – of which only $140 billion was insured

Politics
Regulation
Environment

Supervisory Complexity

ECB

Requires comprehensive integration of climate and environmental risks into the business strategy, organisational structure and risk management of banks

BAFIN

Expects more intensive engagement with physical risks and the disclosure of transparent and comprehensible information for investors

SEC

Rescinded the introduced climate reporting obligations in 2025 following legal challenges

Focus Areas for Financial Institutions

Strategy & Value Creation

Governance & Organisational Structure

Risk Management

Data & Processes

Reporting

Strategy & Value Creation

We support financial institutions in systematically integrating ESG factors into their business strategy and deriving measurable value contributions. Together, we define the target vision, priorities and roadmap – including relevant products, customer segments and transformation levers. This translates sustainability ambitions into management impulses and embeds them within the institution on a long-term basis.

Governance & Organisational Structure

We help build a clear ESG governance framework: roles, responsibilities, committees and decision-making processes are designed to enable effective ESG management. This includes product governance, the handling of conflicts of interest, and the embedding of sustainability factors into policies and control mechanisms – tailored to the institution's organisational structure.

Risk Management

ESG risks must be identified, measured, managed and monitored – consistently with the existing risk framework. We support the integration of climate and environmental risks into risk appetite, methodologies, controls and reporting, as well as the development of structured transition plans. The goal is a robust, auditable ESG risk management framework that meets supervisory expectations.

Data & Processes

Reliable ESG data is the foundation for strategy, performance measurement and sound risk management. We support institutions in building data-driven ESG management – from the collection of publicly available and internal data through to process integration, quality assurance and documentation. This makes decisions more informed and sustainably increases resilience to ESG risks.

Reporting

We support the development of transparent, consistent ESG reporting and the fulfilment of statutory and supervisory disclosure obligations. This includes content design, process and control design, and the traceability of data sources. In doing so, institutions build trust with clients, investors and regulators – while reducing greenwashing risks through clear standards and audit-ready documentation.

ESG Risk Plan & Transition Plans for Financial Institutions

ESG Risk Plan – Aerial view of forest

Developing an ESG Risk Plan

With the new Sections 26c and 26d of the KWG, the legislator is implementing the requirements of Art. 76 CRD VI in a binding manner: financial institutions must systematically integrate ESG risks into their strategy, governance and risk management. Going forward, an ESG risk plan is required as part of the risk strategy, addressing environmental, social and governance risks across short-, medium- and long-term horizons and translating them into clear management processes.

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Transition Plans – Plant growth in hands

Creating Transition Plans

Transition plans are strategic roadmaps that show how your institution will achieve its sustainability goals and manage risks arising from regulatory and climate-related changes. They connect strategy, timelines and measurable progress towards sustainable economic objectives.

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YOUR POINTS OF CONTACT

Lena Franke

Lena Franke

Managing Director,
Certified Public Accountant


Lena Franke is a managing partner at ADVANTA. As a certified public accountant and ESG expert, she assists financial institutions and companies in integrating ESG into their governance, risk management, and reporting structures.

Olya Kolesnikova

Olya Kolesnikova

Manager Advisory,
Head of ESG


Olya Kolesnikova is a manager at ADVANTA and Head of ESG. She assists financial institutions and companies with regulatory ESG requirements, the development of sustainability strategies, and the integration of ESG into risk management.

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