The sustainable finance ecosystem has undergone transformative change since the launch of the Principles for Responsible Banking (PRB) framework in 2019, according to the United Nations Environment Programme Finance Initiative (UNEP FI).
The sector has witnessed a rapid expansion of participants, from ESG ratings agencies and fintech innovators to policymakers and assurance providers, reflecting the maturation of global regulatory environments. What began as best practices under the PRB framework has evolved into state-mandated policies and voluntary reporting frameworks, impacting financial institutions worldwide.
To support banks in navigating this landscape, UNEP FI has introduced three key updates to its guidance, set to launch this November. The first update is ‘Responsible Banking Implementation Journey – Defining Responsible Banking’, which is a comprehensive overview of the practices and processes banks should adopt to align with the PRB principles based on their operational contexts.
The second is ‘Responsible Banking Progress Statement for PRB Signatories’, that is streamlined reporting template emphasising meaningful action, transparency, and competitive sustainability strategies.
The third is the ‘Guidance for Transparency’, focused on helping banks align their efforts with new regulatory and disclosure environments while reducing redundant reporting requirements.
The updates follow a collaborative review by a working group of 27 PRB signatory banks and civil society in Spring 2024. The initiative aims to equip banks with tools to meet robust sustainability targets across PRB’s priority areas: climate, nature, healthy and inclusive economies, and human rights.
These documents emphasise continuous progress, impact analysis, and transparent reporting while enabling banks to address emerging challenges effectively. By integrating these tools, UNEP FI seeks to ensure that the PRB framework remains a strategic guide for sustainable development over the next five years and beyond.
