Leading responsible banks are transforming the finance sector through four inter-related sustainability priorities – climate, nature, inclusive economies and human rights.
With both the United Nations Biodiversity Conference (CBD COP16) and Climate Change Conference (COP 29) on the horizon, the critical role financial institutions play in addressing sustainability risks and managing impacts across their portfolios empowers banks to deliver on their strategic mandate to provide innovative funding and investments.
The UN Environmental Programme Finance Initiative (UNEP FI) recognises climate, nature and biodiversity, healthy and inclusive economies and human rights as the fundamental priorities that support and accelerate a positive global transition for people and planet. As such, these priorities sit at the core of the strategies, policies and practices of our member banks. Representing common sustainability prerogatives, they enable the banking sector to deliver impactful outcomes for clients and customers, whilst addressing the most pressing needs of society and the environment.
Identified by UN Principles for Responsible Banking (PRB) signatory banks and based on recommendations from civil society organisations, UNEP FI is pleased to explore these priorities in two new member guidance documents:
- Leading the Way to a Sustainable Future – Priorities for a Global Responsible Banking Sector
- Responsible Banking Blueprint – A roadmap for action on climate, nature and biodiversity, healthy and inclusive economies and human rights.
The Priorities guidance presents a deep dive into the four strategic priorities, setting forth current challenges, supporting frameworks and impactful outcomes that can be achieved within each area of focus. To contextualise further, here are highlights from each:
- Climate change – supporting the transition towards net-zero and climate resilient development
- Nature and biodiversity – supporting the halt and reversal of nature loss
- Healthy and inclusive economies – supporting socio-economic action that leaves no one behind
- Human rights – supporting the protection of universal human rights
In complement to this, the Blueprint guidance articulates for each of priority area what ambition looks like by 2030 and beyond for banks considered to be leading in their efforts. It aims to provide inspiration across seven thematic areas, including:
- Strategy
- Internal processes and policies
- Portfolio composition and financial flows
- Client engagement
- Advocacy and partnerships
- Target-setting and implementation
- Transparency and disclosure
Rich with more than 100 strategic insights, policy and process recommendations, plus practical implementation guidance derived from PRB working groups, individual bank review meetings and consultations with civil society, the Blueprint is designed to help banks encourage sustainable practices, create synergies with clients, and take up the leadership mantle in the transition towards more sustainable business models and economies.
To be read and understood together, both documents are aimed at banks seeking holistic support as they conduct impact analysis, set initial or extended targets, or prepare for target implementation according to the action or transition plans they have in place. They provide comprehensive guidance and support for both new PRB signatories, as well as for UNEP FI members who are quite mature in their sustainability journey and can be used to engage strategically across a banks’ diverse stakeholder ecosystem, including its Board, C-suite executives, ESG departments, sales and product teams, risk professionals, etc.
Lastly, whilst the four UN PRB priorities do not override or prejudge individual signatories’ context-based priorities – they have regularly surfaced in signatory banks’ evidence-based impact analysis processes. As such they have been found to be crucial for leading responsible banks seeking to deliver a just transition and to support positive and fair sustainable development.