As the world’s economy continues to face increasing environmental, social and governance (ESG) risks, the banking sector has had to adapt by integrating ESG considerations into its lending and investment practices. This shift towards sustainable finance has given rise to new trends, such as sustainability-linked loan products (SLLPs), ESG assessments of portfolios and the evaluation of ESG risks of banks and their customers. In this article, we’ll explore these trends in more detail and explain what they mean for the banking sector.