The ESG and DEI Imperative: How U.S. Banks Can Close the 'Say-Do' Gap in Digital Transformation

The New Mandate for U.S. Banks

Digital transformation is no longer a future aspiration for U.S. banks—it is a present-day imperative. Yet, as banks accelerate their digital agendas, two forces are emerging as critical differentiators: Environmental, Social, and Governance (ESG) and Diversity, Equity, and Inclusion (DEI). These priorities are not just about compliance or reputation—they are shaping the very strategies that will define the next generation of banking leaders. However, a persistent 'say-do' gap remains: while many U.S. banks articulate strong intentions around ESG and DEI, few have the data, processes, or organizational commitment to translate these intentions into measurable outcomes.

Where U.S. Banks Stand: Progress and Gaps

Recent research with hundreds of senior U.S. banking leaders reveals a complex picture:

ESG is on the agenda: 55% of U.S. banks say ESG is driving their digital transformation plans, and 51% believe their ESG strategy gives them a competitive advantage.
But measurement lags: 44% admit they lack the data, capabilities, or processes to properly assess ESG performance, making it difficult to move from intention to impact.
DEI commitments trail global peers: Only 22% of U.S. banks have made formal DEI commitments—lower than every other major banking market. In contrast, DEI commitments are much higher in Southeast Asia (42%), Australia (36%), and Germany (58%).

This gap between what banks say and what they do is not unique to the U.S., but it is more pronounced here than in many global markets. The result: U.S. banks risk falling behind both in social leadership and in the competitive race for talent, customers, and innovation.

Why ESG and DEI Matter for Digital Transformation

ESG and DEI are not side projects—they are central to digital transformation success.

Customer expectations: Today’s customers, especially digital natives, expect their banks to take a stand on sustainability, social justice, and inclusion. Banks that lead on ESG and DEI are better positioned to attract and retain these customers.
Talent and culture: A diverse, inclusive workforce is more innovative and better equipped to solve complex problems. Yet, nearly half of U.S. banks still prioritize technology investment over talent development, missing a key lever for transformation.
Regulatory and investor pressure: Regulators and investors are increasingly scrutinizing banks’ ESG and DEI performance, making robust data and transparent reporting essential.
Competitive differentiation: As ESG and DEI become table stakes, banks that can demonstrate real progress will stand out in a crowded market.

Lessons from Global Leaders

Global benchmarking shows that the most successful banks—those making the most progress in digital transformation—share several traits:

Customer-led culture: 95% of transformation leaders say customer centricity drives key decisions.
Agile operating models: 99% have embraced agility at scale, enabling rapid innovation.
Platform-based, data-driven approaches: Leaders invest in cloud, AI, and analytics to enable real-time insights and innovation—including ESG and DEI metrics.
Partner ecosystems: 98% have broad partner networks, including fintechs and social impact organizations.
Talent and culture: Investment in upskilling, reskilling, and cultural change is as important as technology.

Markets like Southeast Asia and Australia are embedding ESG and DEI into their transformation strategies, with robust data collection and board-level sponsorship. German banks, for example, lead in DEI commitments, while Southeast Asian banks are ahead in both ESG and DEI integration.

Practical Steps to Close the 'Say-Do' Gap

For U.S. banks, closing the gap between ESG/DEI ambition and action requires a holistic, data-driven approach:

Embed ESG and DEI in Strategy and Governance
- Make ESG and DEI core to digital transformation strategy, not afterthoughts.
- Establish board-level sponsorship and oversight for both ESG and DEI.
Invest in Data and Measurement
- Build the data infrastructure to track ESG and DEI metrics alongside financial and operational KPIs.
- Use analytics to identify gaps, set targets, and report progress transparently.
Prioritize Talent and Culture
- Shift investment from technology-only to include talent development, upskilling, and inclusive leadership.
- Foster cross-functional teams that reflect the diversity of the communities banks serve.
Leverage Technology for Impact
- Use AI and intelligent technologies to surface ESG risks, identify bias, and personalize customer experiences for underserved segments.
- Modernize core systems to enable real-time ESG and DEI reporting.
Engage Partners and Communities
- Collaborate with fintechs, community organizations, and social enterprises to co-create solutions that advance ESG and DEI goals.
- Invest in community engagement initiatives, such as financial literacy programs and digital access for underserved groups.

The Path Forward: From Intention to Impact

The imperative is clear: U.S. banks must move beyond statements of intent to deliver measurable progress on ESG and DEI. This is not just about meeting regulatory requirements or keeping up with global peers—it is about building a sustainable, inclusive, and competitive future. By embedding ESG and DEI into the core of digital transformation, U.S. banks can close the 'say-do' gap, unlock new sources of value, and lead the industry into a new era of responsible growth.

Publicis Sapient partners with leading banks worldwide to accelerate this journey, combining deep industry expertise with proven frameworks for sustainable, inclusive transformation. The winners in the next phase of banking will be those who act boldly—reimagining every aspect of their business for a digital-first, ESG- and DEI-driven future.