The Principles for Responsible Banking are a unique framework for ensuring that signatory banks’ strategy and practice align with the vision society has set out for its future in the Sustainable Development Goals and the Paris Climate Agreement. More than 185 banks have signede the Principl, these banks represent more than a third of the global banking […]
The Principles for Responsible Banking are a unique framework for ensuring that signatory banks’ strategy and practice align with the vision society has set out for its future in the Sustainable Development Goals and the Paris Climate Agreement.
More than 185 banks have signede the Principl, these banks represent more than a third of the global banking industry.
The six Principles:
- Alignment – align business strategy to be consistent with and contribute to individuals’ needs and society’s goals, as expressed in the Sustainable Development Goals, the Paris Climate Agreement and relevant national and regional frameworks.
- Impact & Target Setting – increase positive impacts while reducing the negative impacts on, and managing the risks to, people and environment resulting from activities, products and services.
- Clients & Customers – work responsibly with clients and customers to encourage sustainable practices and enable economic activities that create shared prosperity for current and future generations.
- Stakeholders – proactively and responsibly consult, engage and partner with relevant stakeholders to achieve society’s goals.
- Governance & Culture – implement commitment to these Principles through effective governance and a culture of responsible banking.
- Transparency & Accountability – periodically review individual and collective implementation of these Principles and be transparent about and accountable for positive and negative impacts and contribution to society’s goals.
Signatory banks commit to taking three key steps which enable them to continuously improve their impact and contribution to society:
- Analyse their current impact on people and planet
- Based on this analysis, set targets where they have the most significant impact, and implement them
- Publicly report on progress.
To ensure the impact of the Principles the Signatories have agreed robust accountability mechanisms:
- The Banking Board– 11 representatives of the banking community and one from the UN – for ensuring the successful implementation of the Principles.
The Banking Board oversees a biennial report presenting the collective progress of the signatories. Every two years, the Banking Board leads a review of the Principles for Responsible Banking Framework Documents. This is an opportunity to evolve the Principles to keep pace with changing understanding of sustainability.
- Civil Society Advisory Body – 12 members, representing areas of expertise and geography, as well as stakeholders, such as employees and customers. It engages with the Banking Board and collectively with the signatory banks.
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