At the Global Roundtable in Paris on November 26th, the UN Environment Finance Initiative (UNEP FI) and 28 banks from across the world launched a global consultation to establish Principles for Responsible Banking.
An ambition to drive progress
Banks play a key role in our societies. As financial intermediaries, they participate in the development of sustainable economies and provide people with the means to build a better future. However, they must also demonstrate greater transparency and clarity around the ways in which their products and services create value. The Principles for Responsible Banking aim to formalize these new responsibilities.
Six fundamental principles
The provisional charter, established in November 2018, is structured around six principles. These principles affirm the willingness of signatory banks to assume a leadership role in environmental, social and economic changes.
Ambitious objectives for the banking sector
These Principles are ambitious. They aim to define a global framework for a sustainable global banking system. They specify the role and the responsibilities of the sector in the development of a sustainable future, and align the banking sector with the United Nations’ Sustainable Development Goals and the Paris Climate Agreement. These Principles aim to establish the first global norms on banking responsibility, and to ensure value creation for clients, shareholders and society in general. When banks sign the Principles in September 2019, they will commit to publicly acknowledging their social, environmental and economic impacts. They will agree to public objectives aiming to reduce their most significant negative impacts and to reinforce their positive impacts.
The global public consultation is now openOn November 26th, 2018, during the fourth edition of Climate Finance Day and the Global Roundtable, UNEP FI launched a global consultation that aims to establish Principles for Responsible Banking that can be applied throughout the banking sector. In September 2019, banks participating in the consultation will sign a final charter. Banks and stakeholders across the world are invited to give their opinions and comments to help shape the future of the banking sector. The consultation is open for six months.
“Finance in its very nature is forward looking, and we must make sure that it works not only for profit but also for the future of the people and the planet. The framework set out by the UNEP FI in its Principles for Responsible Banking will enable us to move collectively in that direction”, said Jean-Laurent Bonnafé CEO BNP Paribas.