Launch of UN Environment Finance Initiative (UNEP-FI) Principles for Responsible Banking
Monday, 26 November 2018, (Paris, FRANCE): Today at its Global Roundtable in Paris, UN Environment Finance Initiative (UNEP-FI) and 28 banks from around the world are launching the Principles for Responsible Banking for global public consultation. Together the banks represent over USD 17 trillion in combined assets, and CEOs from 12 of the banks will attend the launch.
The Principles will define the banking industry’s role and responsibilities in shaping a sustainable future. By committing to the new framework, banks will be aligning their business with the objectives of the Sustainable Development Goals (SDGs) and the Paris Climate Agreement.
The Principles set the global standard for what it means to be a responsible bank and will ensure that banks create value for both their shareholders and society. They provide the first global framework that guides the integration of sustainability across all business areas of a bank, from strategic to portfolio to transaction level.
By signing the Principles for Responsible Banking when they are launched in September 2019, banks will commit to being publicly accountable for their significant positive and negative social, environmental and economic impacts. They agree to set public targets on addressing their most significant negative impacts and scaling up their positive impacts to align with and contribute to national and international sustainable development and climate targets.
By developing the set of principles, the 28 founding banks set out a clear purpose for the banking industry itself, and also enable investors, policy makers 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.
Signing the Principles will be a serious commitment: banks that continuously fail to meet transparency requirements, set adequate targets and demonstrate progress will face removal from the list of signatories.
Signing the Principles for Responsible Banking is something that all banks that are genuinely committed to sustainability should consider, regardless of their starting point. With differentiated requirements for starter, intermediate and advanced banks on sustainability integration and detailed implementation guidance, they provide an entry point for early stage banks while creating a race to the top among those most advanced.
The Principles are now entering a six-month global public consultation period before they will be signed by banks from around the world at the United Nations General Assembly in New York in September 2019. Banks and stakeholders around the world are invited to provide feedback and input to guide their further development, and to signal their support by becoming Endorsers of the Principles for Responsible Banking. Satya Tripathi, UN Assistant Secretary-General, UN Environment said: “The global banking industry is stepping up to the sustainability challenge. I’m optimistic we’ll see a realignment of business practice – one that embraces the fact that green and socially responsible business is the best business.”
Christiana Figueres, convener Mission 2020 and former Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), urges banks to join the initiative, stating: “The Principles for Responsible Banking align the banking industry with the Paris Agreement and with the Sustainable Development Goals, they are frankly long overdue, and they demonstrate a clear commitment from the banking industry to assume its defining role in creating a sustainable future. The only future that is acceptable and profitable for everyone. Every bank should become a signatory, and all regulators, investors, policy makers and civil society should support the banking industry as it adopts and implements the Principles for Responsible Banking”.
Daniel Wild, Co-CEO of RobecoSAM said: “The Principles for Responsible Banking will drive the banking industry’s alignment with the Paris Climate Agreement and the United Nations’ Sustainable Development Goals. We are integrating part of the requirements of these Principles in the RobecoSAM Corporate Sustainability Assessment (CSA), the leading annual survey of companies seeking to benchmark their sustainability performance and competing for membership in the Dow Jones Sustainability Indices (DJSI). Banks that want to be best in class in the CSA and members of the DJSI should therefore seek to align with this new global standard”.
Martin Skancke, Association Board director Chair of the Principles for Responsible Investment (PRI) said: “The PRI have helped drive the integration of environmental, social and governance considerations into investor decision-making. It is now time for the banking sector to step up in both assessing the risks they are exposed to, and the impacts of their financing activities in realising the Sustainable Development Goals”.
Quotes from Founding Bank CEOs and Leaders:
“CIMB has always emphasized value creation which requires a delicate balancing of the long-term interests of our people, planet and profitability. To that end, we are pleased to commit to the UNEP-FI objectives to champion responsible banking and help transform global banking practices. We firmly believe that as an industry that plays an instrumental role in economic growth and global trade, together banks could be a powerful force for change, to create a huge positive impact not just economically, but also socially and environmentally.”
Tengku Zafrul Aziz
Group CEO, CIMB Group
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“There is a greater need now, more than ever, to mainstream sustainability in the global financial sector. This is therefore the right time to launch the Principles for Responsible Banking. At Access Bank, we are committed to setting standards and engendering innovative solutions that address social, economic and environmental challenges. We believe that the Sustainable Development Goals will be better achieved if we can work together, using these Principles as a guide.”
Herbert Wigwe
CEO, Access Bank
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“The current environmental and social issues pose a multitude of opportunities and threats for financial institutions. Banks can either seize the opportunities and grow, or ignore the threats and go under. The Principles for Responsible Banking allow banks to generate new revenue streams by genuinely connecting to the environment and the society.”
Hassan Abdalla
CEO, Arab African International Bank
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“For a long time Banorte has been engaged in local and international initiatives in the social, environmental and governance dimensions. To participate as founders of the Principles for Responsible Banking represents an opportunity to enhance the impact of our operations in society and to contribute to a more sustainable future, while generating value for all our stakeholders.”
Marcos Ramirez Miguel
CEO, Banorte Financial Group
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“Barclays has been a member of the UN Environment Programme Finance Initiative for more than 20 years and we’re proud to be part of the core group of 28 banks developing the Principles for Responsible Banking. Barclays exists to help develop sustainable economies and to empower people to build better futures. We are committed to playing our part to deliver the SDGs and we do this by helping our clients to raise billions of dollars of social and environmental financing, upskilling millions of people and helping to drive job creation.”
Jes Staley
Group CEO, Barclays PLC
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“Banks must be purpose-driven organizations. With the Principles for Responsible Banking we are redefining the role of banking in society to have a positive impact in people’s lives. BBVA's purpose is to bring the age of opportunity to everyone. We believe that the Principles are very aligned with our strategy and that will help us to reinforce our commitment to sustainable development.”
Carlos Torres Vila
CEO, BBVA
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“Finance in its very nature is forward looking, and we must make sure that it works not only for profit but also for the future of the people and the planet. The framework set out by the UNEP-FI in its Principles for Responsible Banking will enable us to move collectively in that direction.”
Jean-Laurent Bonnafe
CEO, BNP Paribas
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“We want to constantly advance towards becoming a reference of good practice and innovation, multiplying the positive impact on society and influencing the financial market in order to fulfil, with increasing efficiency, its role of supporting and encouraging sustainable development.”
Octavio de Lazari Junior
CEO, Bradesco
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“For years, CIB has worked to provide sustainable capital to help our clients grow, give back to the communities in which we live and work, and incite actionable change as it relates to environmental business practices. We believe it is critical that banks with a long track record of inciting change work together to create actionable and strategic frameworks, like the global Principles for Responsible Banking, to instigate that change from the top down.”
Mr. Mohamed Sultan
COO, Commercial International Bank – Egypt (CIB)
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“To date, we strived to pave the way for doing better business for society through introducing many firsts to our market. The new Principles for Responsible Banking will guide us in building on what we achieved so far and allow banks to credibly showcase their concrete actions in building a better world.”
Ali Fuat Erbil
President & CEO, Garanti Bank
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“For Golomt Bank it is a privilege having become an active member of UNEP-FI and actively work alongside leading global banks to foster sustainable engagement in Mongolia and positively influence other banks, communities and our customers. We recognize our responsibility towards society and the importance of enabling and providing opportunities to be more environmentally conscious.”
Ganzorig Ulziibayar
CEO, Golomt Bank
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“Hana Financial Group (HFG) declared its commitment to fully respond to the requirements and changes of our time to fulfill corporate social responsibility. Our ultimate goal is to pursue the growth of all stakeholders for the betterment of our society and to meet our social responsibility in a balanced manner. We at HFG endorse the Principles for Responsible Banking as a global corporate citizen as well.”
Kim Jung-Tai
CEO, Hana Financial Group
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“As one of the founding banks of "Principles for Responsible Banking", ICBC will continue to make ceaseless efforts for sustainable economic and social development, and contribute to achieving society’s goals as expressed in the Sustainable Development Goals and the Paris Climate Agreement.”
Shu Gu
President, Industrial and Commercial Bank of China
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“The Principles for Responsible Banking articulate a common language in responsible banking practices worldwide. It gives banks a shared foundation on which to build a sustainable future.”
Ralph Hamers
CEO, ING Group
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“We believe responsible business is about establishing and nurturing the foundation of growth for the next generations. To succeed, banks need to bring their written policies into action through strategy for creating long-term value through sustainable banking. KCB Group believes that these principles will create a path towards achieving sustainable financial success and widen the door to financial freedom.”
Joshua N. Oigara
CEO, KCB Group
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“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. Land Bank is looking forward to both contributing to and sharing in the expertise and experience of this global group as we guide the sector towards a smarter and more measurable framework.”
TP Nchocho
CEO, Land Bank
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“Through our products and services, we want to contribute to the transition to a low carbon economy and society’s goals, as expressed in the Sustainable Development Goals, the Paris Climate Agreement and the Guiding Principles on Business and Human Rights. It is about mitigating risks, improving resilience and creating opportunities for a better society. Together we are on a journey towards a sustainable future.”
Casper von Koskull
CEO, Nordea
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“These Principles resonate with the values of Piraeus Bank and strengthen the organization’s culture, founded on accountability, meritocracy and transparency. We endorse the Principles, because we believe that responsible relations with our customers, shareholders, employees and society at large give us a competitive advantage in building trust, supporting sustainable development and restarting the Greek economy.”
Christos Megalou
CEO, Piraeus Bank
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“Responsible banking is not a new concept — but the Principles for Responsible Banking acknowledge how important a concept it is, especially today. Because banking can only fulfil its purpose — creating financial empowerment, jobs and economic growth — if it treats customers, shareholders and society with the respect they deserve. This is profit with purpose; this is the heart of responsibility.”
Ana Botin
Executive Chairman, Santander Group
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“To be a responsible financial group that grows and develops with society, Shinhan Financial Group has been implementing our mission of “Compassionate Finance, Your Companion for the Future”. The Principles for Responsible Banking allow us to disseminate integrated thinking that makes positive impacts on our society and environment.
Cho Yong-byoung
CEO, Shinhan Financial Group
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“The role of banking is about building the future. We are committed to the positive transformations of our economies and societies. We welcome collective approaches and best practice frameworks such as the Principles for Responsible Banking to pave the way for a positive impact together with our stakeholders.”
Frederic Oudea
CEO, Societe Generale
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“As a leading bank on the continent, with operations in 20 African countries, we support the development of the UNEP-FI Principles for Responsible Banking. These global Principles encourage banks to think hard about our wider impacts – both negative and positive – on the societies and environments in which we live and work, and to integrate this thinking into our decision-making.”
Simphiwe Tshabalala
CEO, Standard Bank Group
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“The financial sector is in a very good position to contribute to a sustainable world. Given the magnitude of the global challenges, a global initiative such as the UNEP-FI Principles for Responsible Banking is important to achieve a systemic change. They are an important milestone to accelerate the journey of banks towards a sustainable business model and they provide a good roadmap. We call on all banks to endorse and sign up for the Principles.”
Peter Blom
CEO, Triodos Bank
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“Westpac is proud to have been a founding member of UNEP-FI and Equator Principles - being at the front end of creating positive impact through banking. We pride ourselves on long being recognised for taking action on sustainability issues and that’s why we are so proud to be supporting the development of the Principles for Responsible Banking – reinforcing our commitment to the Paris Agreement and the UN SDGs that sit at the heart of our 2020 Sustainability Strategy.”
Brian Hartzer
CEO, Westpac Group
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“New age banks like YES BANK are paving the way towards a new economic system, geared towards sustainable growth. YES BANK has been mainstreaming its ethos of responsible banking by driving to market, innovative sustainable finance products that positively impact Sustainable Development Goals. The robust roadmap created by the six Principles for Responsible Banking, developed jointly by UNEP-FI, YES BANK and 27 other global banks, will certainly enable the global banking sector to change its approach from maximizing profits to optimizing it, and to align future growth to sustainable development.”
Namita Vikas
Group President & Global Head, Climate Strategy & Responsible Banking, YES Bank
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Notes to editors
1. The six Principles for Responsible Banking that banks commit to (in summary) are:
a) Alignment: We will align our business strategy to be consistent with and contribute to individuals’ needs and society’s goals, as expressed in the Sustainable Development Goals, the Paris Climate Agreement and relevant national and regional frameworks. We will focus our efforts where we have the most significant impact.
b) Impact: We will continuously increase our positive impacts while reducing the negative impacts on, and managing the risks to, people and environment resulting from our activities, products and services.
c) Clients and customers: We will work responsibly with our clients and our customers to encourage sustainable practices and enable economic activities that create shared prosperity for current and future generations.
d) Stakeholders: We will proactively and responsibly consult, engage and partner with relevant stakeholders to achieve society’s goals.
e) Governance and Target Setting: We will implement our commitment to these Principles through effective governance and a culture of responsible banking, demonstrating ambition and accountability by setting public targets relating to our most significant impacts.
f) Transparency and Accountability: We will periodically review our individual and collective implementation of these Principles and be transparent about and accountable for our positive and negative impacts and our contribution to society’s goals.
2. The Principles for Responsible Banking global public consultation is open from today and we encourage banks and stakeholders worldwide to provide their input and feedback to help shape the future of banking. The consultation is open for six months. Please visit http://www.unepfi.org/banking/bankingprinciples/
3. The founding banks and UNEP-FI are calling for banks and key stakeholders to endorse the development of the Principles for Responsible Banking. This involves making a public statement of support. More details about Endorser status are on http://www.unepfi.org/banking/bankingprinciples/
4. The 28 founding banks developing the Principles for Responsible Banking are from five continents and over 20 countries:
Access Bank (Nigeria), Arab African International Bank (AAIB) (Egypt), Banco Pichincha (Ecuador), Banorte (Mexico) Barclays (United Kingdom), BBVA (Spain), BNP Paribas (France), Bradesco (Brazil), Commercial International Bank (CIB) (Egypt), CIMB Bank (Malaysia), First Rand (South Africa), Garanti Bank (Turkey), Golomt Bank (Mongolia), Hana Financial Group (South Korea), Industrial and Commercial Bank of China (ICBC) (China), ING (Netherlands), Kenya Commercial Bank (KCB) Group (Kenya), Land Bank (South Africa), National Australia Bank (NAB) (Australia), Nordea (Sweden), Piraeus Bank (Greece), Santander (Spain), Shinhan Financial Group (South Korea), Societe Generale (France), Standard Bank (South Africa), Triodos Bank (Netherlands), Westpac (Australia), YES Bank (India)
5. The Principles were launched today on 26 November 2018 at a joint event in Paris – the UN Environment Finance Initiative’s biennial Global Roundtable and the 4th Climate Finance Day. Under the High Patronage of Mr Emmanuel Macron President of the French Republic and the French Minister for the Economy and Finance, UNEP-FI and Finance for Tomorrow, an initiative of Paris EUROPLACE, are joining forces to stage three days of action on sustainable finance in the city where decisive action on climate change was finally taken in 2015.
6. 12 of the CEOs from the 28 founding banks are launching the Principles for Responsible Banking in person at the UNEP-FI Global Roundtable in Paris.
About CIMB Group
CIMB Group is one of ASEAN’s leading universal banking groups and is Malaysia’s second largest financial services provider, by assets. It offers consumer banking, commercial banking, investment banking, Islamic banking and asset management products and services. Headquartered in Kuala Lumpur, the Group is now present in 9 out of 10 ASEAN nations (Malaysia, Indonesia, Singapore, Thailand, Cambodia, Brunei, Vietnam, Myanmar and Laos). Beyond ASEAN, the Group has market presence in China, Hong Kong, India, Sri Lanka, Korea, the US and UK.
CIMB Group has the most extensive retail branch network in ASEAN of around 800 branches as at 30 September 2018. CIMB Group’s investment banking arm is also one of the largest Asia Pacific-based investment banks, offering amongst the most comprehensive research coverage around 700 stocks in the region.
CIMB Group operates its business through three main brand entities, CIMB Bank, CIMB Investment Bank and CIMB Islamic. CIMB Group is also the 92.5% shareholder of Bank CIMB Niaga in Indonesia, and 94.1% shareholder of CIMB Thai in Thailand.
CIMB Group is listed on Bursa Malaysia via CIMB Group Holdings Berhad. It had a market capitalisation of approximately RM 56.3 billion as at 30 September 2018. The Group has around 36,000 employees located in 15 countries.
If you require more information, please contact:
Suria Zainal
Group Corporate Communications
Group CEO’s Office
CIMB Group Holdings Berhad
Tel: +603 - 2261 0638
Email: suriawati.zainal@cimb.com
