UN launches responsible banking framework

The UN Environment Finance Initiative and 28 banks from around the world recently launched the Principles for Responsible Banking framework in Paris, France.

According to a statement by the Land Bank, by committing to the new framework, banks would be aligning their businesses with the objectives of the UN’s Sustainable Development Goals and the Paris Climate Agreement.

banks will be held more accountable

The principles provided the first global framework to guide the integration of sustainability across all business areas of a bank, from strategic to portfolio and transaction level, the statement said.

They would also enable investors, policymakers and regulators, clients and civil society to compare banks and hold them accountable for their environmental, social and economic impacts, and their contribution to society’s goals.

Banks that continually failed to meet transparency requirements, set adequate targets or demonstrate progress would face removal from the list of signatories, the statement added.

CEO of the Land Bank TP Nchocho said: “By joining forces as a global banking sector to develop, implement and embed a set of responsible banking principles that guide how we operate, we are able to shape the future we all want by acting to responsibly address the expectations of society now.” – Siyanda Sishuba