While action on climate change is growing, it is still far short of what is needed to meet the 1.5°C target of the Paris Agreement. Meanwhile, biodiversity continues to decline at alarming rates and pollution claims millions of lives each year.
In order to tackle these challenges, and ensure that humanity lives in a way that ensures an equitable share of resources, more ambition, backed by a step-change in investment from the private sector, is needed.
In a massive boost for climate action and sustainability, leading banks and the United Nations have launched the Principles for Responsible Banking, with 130 banks collectively holding USD 47 trillion in assets, or one-third of the global banking sector signed up.
In the Principles leading banks of the world have committed to strategically align their business with the goals of the Paris Agreement on Climate Change and the Sustainable Development Goals, and massively scale up their contribution to the achievement of both.
By signing up to the Principles, banks said they believe that “only in an inclusive society founded on human dignity, equality and the sustainable use of natural resources” can their clients, customers and businesses thrive.
The Principles are supported by a strong implementation framework that defines clear accountabilities and requires each bank to set, publish and work towards ambitious targets. By creating a common framework that guides banks in growing their business and reducing risks through supporting the economic and social transformation required for a sustainable future, the Principles pave the way for the transformation to the sustainable banking industry.
With global leaders coming together to share the actions they are taking to attain the SDGs and address climate change, UN Secretary-General António Guterres said, “the UN Principles for Responsible Banking are a guide for the global banking industry to respond to, drive and benefit from a sustainable development economy. The Principles create accountability that can realize the responsibility, and the ambition that can drive action.”
