Principles for Responsible Banking Signatories are breaking new ground with the launch of the Guidance Document on Impact Analysis and the Portfolio Impact Analysis Tool for Banks
As outlined in the Key Steps to be Implemented by Signatories, conducting an in-depth impact analysis is the starting point for effective implementation of the Principles for Responsible Banking. Through collective leadership, a community of Principles for Responsible Banking Signatories and UNEP FI Member Banks has developed the Portfolio Impact Analysis Tool for Banks and the Guidance Document on Impact Analysis, which will support and guide banks as they get started with their impact analysis.
The Guidance Document on Impact Analysis provides more detailed explanations of the requirements for conducting an impact analysis, what data is required, who in your bank you should reach out to, and examples of the external stakeholders your bank could engage with.
Over time the Guidance Document on Impact Analysis will become a repository of good practices and resources, developed or identified by banks, that can be used for conducting your bank’s impact analysis. The Portfolio Impact Analysis Tool for Banks is one resource that is already available.
The Portfolio Impact Analysis Tool for Banks represents a significant step forward for impact analysis in banking. Developed by over 40 Principles for Responsible Banking Signatories and UNEP FI Member Banks, under the leadership of the UNEP FI Positive Impact Initiative, the Tool guides banks through a holistic analysis of their retail (consumer and business banking) and wholesale (corporate and investment banking) portfolios.
The first version of this groundbreaking Tool is now available. Follow this link to access the Tool.
Banks are encouraged to join the working group on ‘Application and further development of the Portfolio Impact Analysis Tool for Banks’ where peers will have access to training on how to use the Tool, and will be guided through their bank’s impact analysis with the support of their peers and the UNEP FI Secretariat. For more information or questions, please contact Careen Abb and Puleng Ndjwili-Potele.
See what some of the Impact Working Group banks had to say about their experience of developing and testing the Portfolio Impact Analysis Tool for Banks:
- “The tool has provided a clear, step by step methodology to address the complex issue of understanding our bank’s impacts.” Bancolombia, Catalina Cano Zapata
- “This Tool elevated our approach to impact analysis. It accelerated it a lot, as well as broadening it. It fast tracked us to a full 360 degree impact analysis.” Desjardins, Charles Bernardi
- “This is the first time we have such a holistic overview, such a detailed mapping of the bank’s activities and the contribution we have as a bank to sustainable development. We have a clear view of the impact the bank has on the economy of Greece, on its environment and how it affects Greek society. We believe using this tool will constitute a competitive advantage for banks.” Piraeus Bank, Katerina Pournara
- “This Tool will help you to see in a comprehensive way how the sectors you are financing impact on what is important for society, economy and environment in terms of the Impact Radar. With this input, you will be able to make priorities, establish targets and draw a pathway that responds to the reality of your bank in terms of the sectors you finance and geographies you operate in.” Bancolombia, Catalina Cano Zapata
- “Before we started, we had a strong belief that we could contribute to a CO2 reduction since we have agriculture loans, car loans, mortgage lending. Using the Tool, we went from knowing that CO2 reduction was an impact area for us, to having a firm belief that it is actually our top impact area.” Jyske Bank, Mette Kornvig
Impact Working Group Banks