The United Nations Environment Programme Finance Initiative (UNEP FI) has released the third progress report of the UN Principles for Responsible Banking (PRB), highlighting how signatory banks are increasingly integrating sustainability into their core operations against a backdrop of intensifying global regulation on transition planning and sustainable finance.
According to the report, PRB signatories are moving from commitment to implementation — embedding sustainability into business strategy, governance, and client engagement. The initiative is helping banks better manage climate and nature-related risks, enhance competitiveness, and meet rising stakeholder expectations in a global economy where over 50% of GDP depends on nature.
Analysis by the MSCI Sustainability Institute shows that 61% of PRB signatories outperform their industry peers in managing material sustainability risks and opportunities — compared to just 23% of non-signatories. Furthermore, PRB banks benefit financially, paying around one percentage point less on average for equity and debt capital. UNEP FI said the findings underscore how aligning business models with sustainability goals strengthens financial and operational resilience.
The report also points to a surge in global regulatory action inspired by UNEP FI’s pioneering frameworks, such as impact analysis and target setting. In the Asia-Pacific region, UNEP FI found that regulators in eight out of 12 jurisdictions are now systematically integrating sustainability into their mandates.
However, UNEP FI cautioned that overall progress remains uneven and too slow to address the escalating crises of climate change, biodiversity loss, and pollution. Banks continue to face challenges in accessing reliable environmental and social data, highlighting the urgent need for improved corporate disclosures. Political and economic headwinds in some markets are also testing long-term sustainability commitments.
“Over 50 per cent of global GDP is directly dependent on nature. Failing to act on climate and biodiversity risks can lead to stranded assets, regulatory penalties, and reputational damage,” said Eric Usher, Head of UNEP FI. “Achieving a resilient, low-carbon, and inclusive global economy requires coordinated action from governments, industry, and civil society — and so our work must continue.”
Launched in 2019, the Principles for Responsible Banking have become the world’s leading framework for sustainable finance, uniting over 350 banks across 87 countries, collectively representing nearly half of global banking assets.
