Analyse the most significant impacts of your banks’ products and services on society, the environment and the economy. Then identify where your bank can realize the greatest positive impacts and reduce significant negative impacts.

Conducting an in-depth impact analysis is the first step to successfully implementing the Principles for Responsible Banking. Banks should:

  • Determine their scope for impact analysis
  • Review the scale of exposure to different sectors
  • Understand the context and what the most relevant challenges and priorities in the countries/regions where the bank operates are
  • Run an analysis to identify the most significant positive and negative impacts of the bank’s products and services (not internal operational impacts)
  • Prioritise the 2 most significant impact areas, by engaging with internal and external stakeholders
  • Assess the intensity/salience for each impact area. This means measuring their current performance and identifying Sustainable Development Goals, national or regional frameworks they want to align with. This work will be important to define their baseline, and prepare them to move to the next stage: target setting.

Signatory banks can find training, peer learning and tools to help with this step in the Members Area, join a working group or browse the guidance below on best practice.

You can find in the Interactive Guidance for Impact Analysis and Target Setting process the rationale, requirements, and examples. The Guidance will be updated constantly and we encourage banks to send us examples and resources that can be useful to everyone.

Version 1.1 (09.05.2022) – Download here 

You can also download here a Check List and an example to report Principle 2.


Guidance

Working groups of signatory banks worldwide have contributed to creating the below guidance, working with UNEP FI and other experts in the field.

Guidance on 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.


Portfolio Impact Analysis Tool

Developed by over 40 Banks, under the leadership of the UNEP FI Positive Impact Initiative, the Portfolio Impact Analysis Tool for Banks is an interactive input-output workflow which requires users to input data to describe their portfolio and to reflect their current impact performance. The tool uses  a set of in-built impact mappings to produce a number of outputs, in particular a set of impact profiles by business line. It guides the bank to identify its most significant impact areas and determine priorities,  setting the basis for strategy development and target-setting per Step 2 of implementing the Principles. Learn more

Download the Tool


Working Groups

Joining our working groups is a great opportunity for signatory banks to lead at the cutting-edge of responsible banking through developing practical guidance and pioneering tools with other pioneering banks.

Portfolio Impact Analysis Tool: Signatories have further developed the Portfolio Impact Analysis Tool with a V2 release in April 2021. This working group includes developing the Investment Banking component of the Tool, exploring a new impact analysis tool specific to real estate investment, as well as considering the impact management & disclosure ‘system of standards’ website.

Peer Exchange: This working group provides a platform for banks to share and learn about approaches to impact analysis being used by peer banks. Learn about and engage in the development of the methodology for impact measurement.

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