ERM - Intesa Sanpaolo due diligence tool

Intesa Sanpaolo partnered with ERM to develop an ESG screening tool approach that integrated existing tools for assessing the ESG risks for its credit operations.

The challenge was to develop an ESG tool for a bank that needs to perform a complete preliminary risk assessment for a large number of clients using an easy-to-use tool.

ERM’s solution was to pursue a two-pronged approach that reflected the bank’s structure for assessing risk:

• Level I ESG tool: for nontechnical front-office staff to perform a preliminary risk assessment over a short period of time for a large number of companies, using free, publicly available information and ratings from information providers.
  
• Level II ESG tool: to review the structure and contents of Intesa’s existing tool for higher risk opportunities.

Using the tool helped the bank perform due diligence using a more efficient and robust process. The key learnings confirm that the Level I tool, designed with pre-determined information that is periodically updated, is quick and easy to complete by front-end staff. It contains a full review of available information on the web, incorporating a range of ESG indicators that analyze intrinsic and company-specific risks – meeting the needs of Intesa Sanpaolo. Further developments are expected in 2022 thanks to the introduction of a proprietary ESG score.

It is the sole responsibility of the Sustainable Finance Partner to check the truthfulness, accuracy and completeness of the data and information entered on this web page, when within its competence and provided by the Partner. Borsa Italiana S.p.A. is not responsible for the contents developed by third parties and in particular by the Sustainable Finance Partners contained in this web page.