Banks play a crucial role as economic intermediaries, engaging with their customers and clients to promote sustainable practices and support customers adapt to greener, more resilient business models, technologies, and lifestyles.
In this context, the UN is thrilled to commemorate the fifth anniversary of the ratification of the Principles for Responsible Banking (PRB).
Watch our video series exploring the benefits of implementing the PRB here.
Launched in 2019, the Principles offer a comprehensive approach to addressing sustainability risks and managing impacts in a bank’s portfolio. They set out actions for the global banking industry, guiding institutions towards becoming a responsible bank, and positioning them as leaders in the transformation that our economies need to build a more sustainable future.
As such, the Principles are the foremost sustainable banking framework – constituting the singular mechanism by which banks can positively align their strategy, practices, lending and investment with the UN Sustainable Development Goals, Paris Climate Agreement and Kunming-Montreal Global Biodiversity Framework, as well as with other national/regional frameworks.
The UN holds a clear vision for what a responsible banking sector looks like.
Responsible banks measure and manage the impact of their financing on people, society and the planet. In doing so, leading responsible banks commit to:
- Shifting their financing, lending and investment practices toward positive sustainability impacts that benefit current and future generations.
- Working closely with industry, stakeholders and civil society across four sustainability priorities – climate, nature and biodiversity, healthy and inclusive economies and human rights.
- Ambitiously progressing from strategy alignment, impact analysis and target-setting to actionable implementation.
- Proactively embracing client and customer engagement, effective governance and transparent reporting to catalyse action across the financial system.
By providing clear, adaptable, and credible solutions tailored to banks at any stage of their sustainability journey regardless of size or location – the Principles enable signatories to drive change at scale, benefiting both people and planet.