Examining the Impact of New Regulation on Sustainable Investments, Banking Strategies, and Client Choices

This research examines the impact of new regulation on sustainable investments, banking strategies and client choices. The new II ESG regulation requires financial institutions to solicit the sustainability preferences of their clients. The organisation established sustainability profiles which are linked to these clients preferences.This leads to a recommended sustainability profile. However, clients can choose another sustainability profile. Since the legislation has only been in effect for a year, the organisation has little insight into the choices clients make regarding sustainability. We therefore analysed the data and can conclude there is a discrepancy between the calculated and chosen sustainability profile of clients.