In a bid to define the banking industry’s role and responsibilities in shaping a sustainable future, UN Environment Finance Initiative (UNEP FI) and 28 banks from around the world are launching the Principles for Responsible Banking for global public consultation at its Global Roundtable in Paris. By committing to the new framework, banks will be aligning their business with the objectives of the Sustainable Development Goals (SDGs) and the Paris Climate Agreement.
By developing the set of principles, the 28 founding banks set out a clear purpose for the banking industry itself and enables investors, policymakers and regulators, clients and civil society to compare banks and hold them accountable for their environmental, social and economic impacts. Signing the Principles will be a serious commitment: banks that continuously fail to meet transparency requirements set adequate targets and demonstrate progress will face removal from the list of signatories.
The Principles now enter a six-month global public consultation period before they will be launched in September 2019. By signing the Principles for Responsible Banking, banks will commit to being publicly accountable for their significant positive and negative social, environmental and economic impacts. They agree to set public targets on addressing their most significant negative impacts and scaling up their positive impacts to align with and contribute to national and international sustainable development and climate targets.
“The global banking industry is stepping up to the sustainability challenge. I’m optimistic we’ll see a realignment of business practice – one that embraces the fact that green and socially responsible business is the best business.” Said Satya Tripathi, UN Assistant Secretary-General, UN Environment.
Banks and stakeholders around the world are invited to provide feedback and input to guide their further development and to signal their support by becoming Endorsers of the Principles for Responsible Banking and help shape the future of banking.
Original source: UN Environment
Published on 26 November 2018
