ABSTRACT
The chapter reviews recent developments in the banking industry on sustainability integration and specifically how the newly launched Principles for Responsible Banking herald a new age for the industry in setting out a clear framework for what it is to be a responsible bank. The present-day transactional environmental and social risks management focus of banks is contrasted with the wider and more strategic ESG focus of investors who, along with financial regulators and civil society, are now placing pressure on banks to step up in response to the Paris Climate Agreement and the UN 2030 Agenda more broadly. The Principles for Responsible Banking are presented, including how drafting the Principles in the post-2015 world has made them different in their approach to impact and their outcomes-focused orientation. The target-setting mechanism of the Principles are described in detail, with specific examples drawn from the core group of drafting banks involved. The chapter concludes with a discussion on how banks setting targets towards addressing the biggest needs of society will provide new opportunities for public–private dialogue and planning in the years to come.
