In light of the climate change risks & ESG material issues, the banking sector needs to define and affirm its role in shaping and financing a sustainable future.
The Principles for Responsible Banking (PRB) provide the much-needed framework for the sustainable banking system of the future and helps the banking industry to demonstrate how it makes a positive contribution to society.
They embed sustainability at the strategic, portfolio, and transactional levels, and across all business areas.
Why Report on the Principles for Responsible Banking?
- A Comprehensive framework addressing the strategic, portfolio, and transaction-level across all the bank’s business areas
- Allows Banks to align with the Sustainable Development Goals, the Paris Climate Agreement and Society’s Goals
- The first framework that allows the Banks to identify the areas of the most significant positive and negative impact
- Allows Banks to set SMART targets to address the identified significant impacts
- Enhances Transparency and Accountability through public reporting and review
- Helps the Bank identify areas of improvement to manage risks
- Gives creditability to the Bank on following the global and national direction to contribute to the achievement of society’s goals
Benefits of Adopting the Principles of Responsible Banking
INTERNAL BENEFITS FOR FINANCIAL INSTITUTIONS
- Identify the E&S impact of your lending portfolio
- set targets to capitalize on its positive impacts and mitigate the negative impacts.
- Reinforce responsible investment decisions and risk management
- Generate revenue streams and seize new business opportunities
EXTERNAL BENEFITS FOR FINANCIAL INSTITUTIONS
- Fulfill and promote your bank’s commitment to responsible banking
- Meet compliance requirements of CBE, FRA, investors, and international financial institutions
- Communicate with stakeholders your responsible banking practices and the impact of your portfolio on the economy, society, and the environment
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