The ESG 'Say-Do' Gap in Financial Services: Turning Sustainability Intentions into Action

The Challenge: Ambition Outpaces Action

Environmental, Social, and Governance (ESG) commitments have become a defining feature of the financial services landscape. Banks and financial institutions are under mounting pressure from customers, regulators, and investors to lead on sustainability. Yet, as revealed in Publicis Sapient’s global banking benchmark studies, a significant gap persists between what banks say about ESG—and what they actually do.

This "say-do" gap is not just a reputational risk; it is a strategic and operational challenge. While 61% of senior banking executives report feeling significant pressure to address ESG risks, only 31% have implemented ESG sponsorship and oversight at the board level. The disconnect is clear: ESG is high on the agenda, but embedding it into the core of banking operations remains a work in progress.

Why the Gap Exists: Pressures and Priorities

Banks face a complex web of expectations:

Customers increasingly demand sustainable products and transparent reporting on ESG progress.
Regulators are tightening requirements around climate risk, diversity, and responsible lending.
Investors are scrutinizing ESG performance as a proxy for long-term value and risk management.

Despite these pressures, banks are also contending with legacy technology, data silos, and the need to deliver short-term financial results. The result? Many institutions set ambitious ESG goals, but struggle to operationalize them at scale.

The Reality Check: Insights from Banking Leaders

Publicis Sapient’s research with over 1,000 senior banking executives worldwide highlights the scale of the challenge:

61% feel significant pressure to address ESG risks, but only 31% have board-level ESG oversight.
72% have guidance on how ESG risks should be assessed for investment and financing, but only 41% have set sustainability financing targets.
Employee training on ESG matters is present in 67% of banks, yet only 35% have formal diversity, equity, and inclusion commitments.

This data reveals a pattern: banks are quick to announce ESG intentions, but slower to implement the structures, incentives, and data strategies needed to deliver measurable outcomes.

Closing the Gap: Practical Steps for Banks

To move from ESG talk to tangible action, banks must embed sustainability into the fabric of their organizations. Here’s how:

1. Make ESG a Board-Level Imperative

Leadership matters. Banks that have implemented ESG sponsorship and oversight at the board level are better positioned to drive change. This means:

Assigning clear accountability for ESG outcomes.
Integrating ESG into strategic planning and risk management.
Ensuring executive compensation and incentives are tied to sustainability performance.

2. Operationalize ESG Across the Business

ESG cannot be a side project. Leading banks are:

Embedding ESG criteria into lending, investment, and product development processes.
Setting clear sustainability financing targets and tracking progress.
Training employees at all levels on ESG principles and their role in achieving goals.

3. Build a Data-Driven ESG Strategy

Data is the foundation for credible ESG action. Yet, many banks struggle with fragmented systems and inconsistent metrics. To address this:

Invest in modern data platforms that unify ESG data across the organization.
Develop robust frameworks for measuring, reporting, and verifying ESG performance.
Use data analytics to identify risks, opportunities, and areas for improvement.

4. Align Executive Incentives with ESG Outcomes

Incentives drive behavior. Banks that link executive performance metrics to ESG targets are more likely to see real progress. This includes:

Incorporating ESG KPIs into annual reviews and bonus structures.
Recognizing and rewarding teams that deliver on sustainability commitments.
Communicating progress transparently to stakeholders.

5. Foster a Culture of Continuous Improvement

Sustainability is a journey, not a destination. Banks should:

Encourage cross-functional collaboration on ESG initiatives.
Learn from peers and industry leaders to adopt best practices.
Embrace transparency, acknowledging both successes and setbacks.

The Digital Advantage: Accelerating ESG Transformation

Digital transformation is a critical enabler for closing the ESG say-do gap. Banks that invest in cloud-based core systems, advanced analytics, and agile operating models are better equipped to:

Integrate ESG data into decision-making in real time.
Launch innovative sustainable finance products.
Respond quickly to evolving regulatory and stakeholder demands.

Publicis Sapient’s research shows that transformation leaders—banks that excel in both customer experience and operational agility—are more likely to have robust ESG strategies in place. These institutions treat ESG as a core business driver, not a compliance exercise.

The Road Ahead: From Compliance to Competitive Advantage

The financial services industry stands at a crossroads. The pressure to deliver on ESG promises will only intensify as customers, regulators, and investors demand more than words—they want evidence of impact.

Banks that bridge the say-do gap will not only mitigate risk and enhance reputation, but also unlock new sources of value. By embedding sustainability into strategy, operations, data, and incentives, financial institutions can lead the way in building a more resilient and responsible future.

At Publicis Sapient, we help banks turn ESG ambition into action—through digital transformation, data strategy, and operational change. The time to act is now.