ESG and Diversity in Banking Transformation: Closing the Say-Do Gap

The New Imperative: ESG and DEI at the Heart of Banking Transformation

As the global banking sector accelerates its digital transformation, environmental, social, and governance (ESG) priorities—and diversity, equity, and inclusion (DEI) commitments—are emerging as critical differentiators. Banks are under mounting pressure from customers, employees, regulators, and investors to demonstrate real progress on ESG and DEI. Yet, a persistent gap remains between what banks say and what they do. Closing this "say-do" gap is not just a matter of compliance or reputation—it is a strategic necessity for banks seeking to lead in a digital-first, customer-centric future.

The Say-Do Gap: Intention vs. Action

Globally, more than half of banks report significant pressure to improve their ESG credentials, with 61% of C-level executives feeling this acutely. However, only 31% have implemented ESG sponsorship and oversight at the board level, and just 35% have made formal DEI commitments. This gap between intention and action is echoed in the data: while 83% of banks claim to have a clearly articulated digital transformation strategy, more than half admit they have yet to make significant progress on execution. The same pattern holds for ESG and DEI—ambitious goals are set, but meaningful, organization-wide change is lagging.

Regional Differences: A Global Challenge with Local Nuances

The journey to embed ESG and DEI into banking transformation is far from uniform. Regional differences in regulation, customer expectations, and competitive pressures shape both priorities and progress:

Southeast Asia and Australia lead in DEI commitments, with 42% and 36% of banks, respectively, making formal pledges. ESG is a top driver of transformation for 65% of Southeast Asian banks and 57% of Australian banks.
France stands out for ESG focus, with 50% of banks citing ESG and sustainability as their number one priority for the next three years, and 62% saying ESG drives transformation.
The U.S. and U.K. lag in DEI, with only 22% and 32% of banks, respectively, making DEI commitments, despite over half saying ESG is a key driver of digital transformation.
Germany is a DEI leader in Europe, with 58% of banks making commitments.

Despite these differences, the say-do gap is a universal challenge. Many banks lack the data, processes, and board-level oversight needed to measure and manage ESG and DEI performance effectively.

Why Closing the Gap Matters: Competitive Advantage and Customer Trust

Banks that lead on ESG and DEI are not just meeting stakeholder expectations—they are building sustainable competitive advantage. The data shows:

Customer-Centricity: 95% of transformation leaders say customer centricity drives key decisions. These banks are more likely to embed ESG and DEI into product design, customer journeys, and community engagement.
Agility and Innovation: 99% of transformation leaders have embraced agile operating models, enabling them to respond quickly to evolving ESG and DEI requirements and opportunities.
Talent and Culture: Investment in upskilling, reskilling, and cultural change is as important as technology. Banks that prioritize DEI attract and retain the best talent, a quality 34% of banks fear most in their competitors.
Partner Ecosystems: 98% of leaders have broad partner networks, allowing them to scale ESG and DEI initiatives rapidly and credibly.

Practical Steps: Embedding ESG and DEI in Transformation Agendas

Transformation leaders are taking concrete actions to close the say-do gap:

Board-Level Sponsorship: Elevate ESG and DEI to the board agenda, ensuring oversight, accountability, and alignment with business strategy.
Data-Driven Measurement: Invest in modern data architectures to track ESG and DEI metrics, enabling real-time insights and transparent reporting.
Talent and Culture Transformation: Prioritize upskilling, reskilling, and inclusive leadership development. Structure teams around customer segments and community needs to foster diversity of thought and experience.
Customer-Led Innovation: Integrate ESG and DEI into product development, customer journeys, and community engagement—such as financial literacy initiatives and support for underserved groups.
Agile Operating Models: Adopt agile, cross-functional teams to accelerate ESG and DEI initiatives, break down silos, and drive organization-wide change.
Partner Ecosystems: Collaborate with fintechs, technology partners, and community organizations to scale impact and share best practices.

Best Practices from Transformation Leaders

Southeast Asia: 42% of banks have made DEI commitments, and 65% say ESG drives transformation. These banks are leveraging data to personalize services and engage communities, especially those with limited digital skills.
France: With ESG as a top priority, French banks are investing in technology and data platforms to better understand and serve their customers, while also focusing on community engagement and financial literacy.
Australia and Germany: High rates of DEI commitment are matched by investment in agile operating models and cloud-based systems, enabling rapid innovation and inclusive growth.

The Path Forward: From Compliance to Leadership

The future of banking belongs to those who move beyond compliance and embed ESG and DEI into the core of their digital transformation agendas. This requires bold leadership, investment in people and technology, and a relentless focus on closing the say-do gap. Banks that act decisively will not only meet rising stakeholder expectations—they will define the next era of sustainable, inclusive banking.

Publicis Sapient partners with leading banks worldwide to accelerate this journey, helping them navigate local complexities while adopting global best practices. To learn how your bank can lead on ESG and DEI, contact us today.