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
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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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