Developing sustainable banking

Advancing sustainable financial services
The financial services sector is responding to the growing challenge of shareholder and stakeholder expectations on social and environmental performance. Given the intermediary role banks play within economies, their potential contribution toward sustainable development is enormous. Corporate sustainability has become an investable concept that increases long-term shareholder value is becoming difficult to deny.

To date, banks have been relatively slow to examine their exposure to risk (the environmental and social performance of their clients) and the business opportunities of sustainable development (the products and services they offer). This is beginning to change, with both risk and opportunity becoming established elements in banking policies towards environmental sustainability. In addition, banks have now begun to take notice of and address their own environmental performance.

There are many shining examples in the co-operative, mutual and social sectors of the banking and financial services world.
Environmental and ethical considerations in such loan portfolios have proven to be profitable and 'best-in-class' larger banks are now also reaping benefits.
Counter Claim:
Sustainable banking has not been achieved and nor will it be in the immediate future. As globalization proceeds apace, improvements are necessary in banks' attitudes toward transparency and accountability with regard to their lending policies. In addition, in order to promote best practice, the leading banks need to start measuring their customers' environmental performance in order to persuade polluting clients that minimum compliance to regulations will no longer suffice.
Type Classification:
E: Emanations of other strategies