UNEP’s Principles for Responsible Banking:
what it means for business
The Six UNEP FI Responsible Banking Principles consultation* has been launched in November 2018 in Paris.
The implications for the entire banking industry are enormous – 28 global banks, representing over USD 17 trillion in combined assets, have already committed to the Principles. And this number is set to increase very shortly, with the European Banking Federation’s entire membership base expected to sign up in early 2019.
During this live webinar, we discussed these developments and implications for the financial services sector.
*The UN Consultation will be open until 31st May 2019, interested parties and stakeholders across the investment value chain are invited to shape the Responsible Banking Principles and the Implementation Guidance: http://unepfi.org/consult
Hear directly from UNEP FI’s Responsible Banking Working Group, a leading bank involved in the discussions (BBVA), a global market and policy observer think tank (Network for Sustainable Financial Markets, NSFM) and the ESG risk management solutions provider (Datamaran).
During the live webinar, we addressed the following questions:
- What are the leading ESG developments for the financial services sector in 2019? (Datamaran insights)
- What is the purpose of the Responsible Banking Principles – why banks should care?
- What are the implications of adopting the Principles for regulators and business?
- Are the Principles calling for a better, top-down alignment of financial and non-financial risk management - and how?
- How to close the gap: what investors need from companies and what companies think investor do not understand about what is material for them.
- How will these Principles help to bring ESG disclosures and performances to scale?
Similar to other principles or taxonomy-based initiatives, including the PRI’s Responsible Investment Principles, UNEP FI’s Responsible Insurance Principles, the FSB’s Task Force on Climate-related Financial Disclosures (TCFD) and the EU Commission’s Sustainable Finance Action Plan (and the upcoming Taxonomy, 2019), this initiative sends a strong signal to the financial services sector: non-financial issues are becoming mainstream and reporting is becoming a mandatory requirement, for investors, underwriters and the buy and sell side in financial services. The ESG momentum is being supported by investors, corporations, Central Banks and regulators - most recently, the FCA opened a consultation on the impact of climate change and green finance on financial services.**
**FCA consultation on the impact of climate change and green finance on financial service, 2018-19: https://www.fca.org.uk/news/press-releases/fca-opens-discussion-impact-climate-change-and-green-finance-financial-services