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

The New Imperative: ESG and DEI as Drivers of Banking Transformation

Environmental, social, and governance (ESG) priorities—and diversity, equity, and inclusion (DEI) commitments—are no longer peripheral concerns for banks. They have become central to the digital transformation agenda, shaping how banks define value, build trust, and compete in a rapidly evolving landscape. Yet, as regulatory scrutiny and stakeholder expectations intensify, a persistent gap remains between what banks say about ESG and DEI—and what they actually do.

Recent global surveys of senior banking leaders reveal that while the majority of banks feel significant pressure to address ESG risks and advance DEI, only a minority have embedded these priorities into their core strategies, data practices, and operating models. This "say-do gap" is now a critical challenge—and a unique opportunity for banks to differentiate on purpose, values, and impact.

The Rising Importance of ESG and DEI in Banking

Across all major markets, ESG and DEI are rising up the transformation agenda:

61% of banks report significant pressure to improve their ESG credentials, with this figure even higher among C-level executives.
35% of banks globally have made formal DEI commitments, with regional leaders in Southeast Asia (42%), Australia (36%), and Germany (58%).
In France, 50% of banks cite ESG and sustainability as their number one priority for the next three years, while in Southeast Asia, 65% say ESG is a key driver of digital transformation.
Despite this, only 31% of banks have implemented ESG sponsorship and oversight at the board level, and just 32% of UK banks and 22% of US banks have made DEI commitments.

The pressure to act comes from all sides: customers, employees, investors, and regulators. Customers increasingly expect their banks to address societal challenges, from climate change to financial inclusion. Employees want to work for organizations that reflect their values and offer equitable opportunities. Regulators are demanding greater transparency, data, and accountability on ESG and DEI performance.

The Say-Do Gap: From Intention to Action

Despite strong intentions, banks face significant challenges in translating ESG and DEI commitments into measurable outcomes:

Data and Measurement: Many banks lack the data, capabilities, or processes to properly assess their ESG and DEI performance. For example, 47% of UK banks and 44% of US banks say they cannot adequately measure their ESG impact.
Board-Level Sponsorship: Only a minority of banks have established board-level oversight for ESG, limiting the ability to drive change across the organization.
Operational Integration: ESG and DEI are often siloed from core business and technology transformation efforts, making it difficult to embed these priorities into product design, risk management, and customer experience.
Regional Disparities: Commitment and progress vary widely by region. Southeast Asia and Australia lead on DEI, while France and Southeast Asia are out front on ESG. The US and parts of Europe lag behind, particularly on diversity.

Regional Leaders and Global Lessons

The most advanced banks—transformation leaders—share several traits that enable them to close the say-do gap:

Customer-Led Culture: 95% of transformation leaders say customer centricity drives key decisions, including those related to ESG and DEI.
Agile Operating Models: 99% have embraced agility at scale, allowing them to respond quickly to new ESG and DEI requirements.
Data-Driven Approaches: Leaders invest in cloud, AI, and analytics to enable real-time ESG and DEI insights, supporting both compliance and innovation.
Partner Ecosystems: 98% have broad partner networks, enabling collaboration on sustainability, inclusion, and community engagement.
Talent and Culture: Investment in upskilling, reskilling, and cultural change is as important as technology, ensuring that ESG and DEI are lived values, not just policies.

Practical Steps to Embed ESG and DEI in Banking Transformation

To move from intention to impact, banks should focus on four practical actions:

Make ESG and DEI Core to Strategy and Leadership
- Elevate ESG and DEI to board-level priorities, with clear sponsorship and accountability.
- Integrate ESG and DEI metrics into executive performance and transformation KPIs.
Invest in Data, Measurement, and Transparency
- Build robust data architectures to capture, analyze, and report on ESG and DEI outcomes.
- Use data to identify gaps, set targets, and track progress—enabling transparent reporting to stakeholders and regulators.
Embed ESG and DEI in Product, Risk, and Customer Experience
- Design products and services that advance sustainability and inclusion, such as green financing or accessible digital banking for underserved communities.
- Incorporate ESG and DEI criteria into risk assessment, lending, and investment decisions.
- Personalize customer journeys to reflect diverse needs and promote financial wellbeing.
Foster a Culture of Agility, Inclusion, and Collaboration
- Break down silos between ESG, DEI, technology, and business teams.
- Empower cross-functional teams to innovate and deliver on ESG and DEI goals.
- Invest in talent development, upskilling, and inclusive leadership.

The Path Forward: Differentiation Through Purpose and Action

As ESG and DEI become defining issues for the banking sector, the winners will be those who close the say-do gap—moving beyond statements of intent to deliver measurable, meaningful impact. This requires a holistic approach: embedding ESG and DEI into strategy, data, culture, and every stage of the digital transformation journey.

Publicis Sapient partners with leading banks worldwide to accelerate this transformation, helping them navigate local complexities while adopting global best practices. By acting boldly and decisively, banks can not only meet rising stakeholder expectations but also unlock new sources of value, trust, and growth in a digital-first future.

Ready to close the say-do gap in ESG and DEI? Connect with Publicis Sapient to learn how your bank can lead with purpose, drive measurable impact, and set the standard for transformation leadership.