Banking & Payments Federation Ireland (BPFI) has today announced its endorsement of the United Nations Principles for Responsible Banking which provide a framework for a sustainable banking system. The Principles embed sustainability at the strategic, portfolio and transactional levels, and across all business areas.
Speaking at an event to mark Climate Finance Week Brian Hayes, Chief Executive, BPFI outlined the significance of the Principles: “Banks in Ireland are acting now to understand and manage the climate risk across all business areas. The BPFI endorsement of the UN Principles for Responsible Banking demonstrate the commitment of the wider banking sector here in Ireland to this key agenda. In working towards the Principles, banks will look to align their business activity and practices with the goals of the Paris Agreement on Climate Change and the UN Sustainable Development Goals (SDGs).
These Principles are impactful and will mean institutions adopting a number of measures including conducting an impact analysis to identify their biggest potential positive and negative impact on the societies, economies and environments in which they operate. Banks will also set targets that address their biggest impact areas and report on how they are implementing the Principles, the targets they have set and the progress they have made.
Mr. Hayes continued: “Banks in Ireland have already demonstrated their understanding of the importance of sustainable banking, with banks launching Green Bond frameworks and green finance funds that reward customers for choosing green finance products, including for new homes, retrofitting homes, business loans for energy efficiency purposes and socially responsible investment funds. We look forward to working with government to structure incentives for consumers and SMEs in a manner that makes energy efficient choices user friendly and affordable.”
The UN Principles for Responsible Banking brings together nearly 200 banks managing the business of more than 1.6 billion customers worldwide and represent around 40% of global banking assets.
Notes: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland and the Fintech & Payments Association of Ireland, BPFI has some 100 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
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