Research shows that strong performing governance frameworks have a bearing on risk management and business opportunity outcomes. We also know that good governance systems support more consistent delivery against organisational objectives and targets.

Moreover, as financial intermediaries, banks have an important role in developing sustainable economies and empowering people to build better futures. Against challenging market conditions and tensions, it is more important than ever for institutions to reinforce their commitments through well governed action.

Written by banks for banks, the UN Environment Programme Finance Initiative (UNEP FI) has produced new guidance on the subject of sustainability governance. Designed to help banks move beyond analysis and target-setting, towards actionable implementation, the report provides a model for sustainability governance from the banking perspective.

With the importance of governance recognised in meeting existing sustainability and impact targets and actions, the guidance demonstrates how leading responsible banks deploy sustainability governance models defined by: (a) responsible leadership, (b) governance design, (c) sustainability integration, (d) purpose and knowledge and (e) stakeholder engagement.

With strong interest and commitment to governance as a responsible banking enabler, a working group of 27 Principles for Responsible Banking (PRB) signatory banks have delivered dedicated, practical guidance on the actions banks can take to implement Principle 5 – Governance & Culture.

By taking impactful action under Principle 5 – which emphasises institution strength and soundness as key elements that bind businesses to the communities in which they operate and serve – banks of varying size, scale, resources and geography can navigate the significant transformation required to translate their sustainability commitments into action and positive progress. Download the report here.