Scottish finance body joins 49 global banks to support new industry standard for sustainable banking

A coalition of 49 banks, including Barclays and Santander, have committed to aligning their strategy, portfolio and business practices with the Sustainable Development Goals (SDGs) and the Paris Climate Agreement.

The Ethical Finance Hub is amongst the first stakeholders to endorse the Principles that provide a global framework for banks to integrate sustainability across all business areas; from strategic, to portfolio, to transaction level.

In 2015 Scotland was one of the first countries in the world to sign up to adopting the SDGs. With the SDGs now embedded into the country’s National Performance Framework the Scottish Government is leading by example through its focus on wellbeing, and sustainable and inclusive economic growth. The Principles align well with the traditions of the Scottish banking industry which, over the past two centuries, has pioneered movements focused on inclusion, stewardship and governance.

Julian Parrott, director and board member, Ethical Finance Hub, said: “The Ethical Finance Hub aims to create a fairer, more inclusive and socially responsible financial system and we see the Principles for Responsible Banking as an important, and necessary, framework that will support the global banking sector to take a consistent and measurable approach to sustainability. We are committed to promoting the draft Principles for Responsible Banking within our networks and welcome this exciting opportunity to work with UNEP FI and partners to raise awareness and encourage adoption.”

Simone Dettling, head of the banking team at UNEP FI, said: “It is fantastic to see this coalition growing so quickly. The Principles for Responsible Banking are rapidly setting the global standard for what it means to be a responsible bank. We invite banks that haven’t endorsed them yet to join and show their commitment to the sustainable banking system of the future.”

The Principles are currently out for global public consultation until May 2019 and will become available for signature in September 2019, during the UN General Assembly.

The transparency and accountability mechanism of the Principles will require signatories to address their most significant impacts, set public targets and report back on progress.