Sustainability is a key aspect of a bank’s strategy and a driver of competitive advantage. Focusing on UN priorities such as climate, nature and human rights, explore how the PRB’s Responsible Banking Journey helps banks increase operational resilience, ensure institutional future-proofing, and realise commercial growth – whilst driving positive change for both people and planet.

 

Vision for a Responsible Banking Sector

PRB Responsible Banking Journey

With Assessment, Strategy and Action as cornerstones, the PRB Responsible Banking Journey is a visual representation of the ambitious, continuous progress that signatories make as they advance from foundational to leading practice. It inspires and informs responsible banking leadership, guiding members’ sustainability path more concretely, whilst also taking into account their unique regulatory, regional and commercial contexts.

Click to enlarge Journey visual

 

Priorities for Responsible Banking

The UN recognises climate, nature and biodiversity, healthy and inclusive economies and human rights as the fundamental priorities that support and accelerate a positive global transition. PRB signatories progressing through their Responsible Banking Journey are encouraged to adopt circular economy and just transition as enabling approaches to address the four priority areas in an integrated manner.

Click to enlarge Priorities visual

 

Are you already a UNEP FI member? Find the latest member news, 2025 Banking Work Plan, Regional Implementation Programme updates and more in the Members’ Area.

 

Responsible Banking Journey Cornerstones

Integrating four interconnected priority areas – Climate, Nature, Human Rights and Healthy & Inclusive Economies – the PRB helps banks to understand and navigate risks, opportunities and impacts, contributing to related national and international sustainability goals. Guiding banks from any starting point and level of maturity, the PRB provides a 360-degree framework that enables banks to take action and make progress against the environmental and social sustainability priorities relevant for their bank. The three cornerstones of the PRB’s Responsible Banking Journey – Assessment, Strategy and Action – support banks as they continuously advance from foundational steps through to leading practice.

Explore each of the tabs below to learn more about the PRB Framework’s Assessment, Strategy and Action cornerstones.

Click on visual to expand

Assessment – Creating value for shareholders, people and planet

Analyzing impact, risks and opportunities, as well as measuring and monitoring progress, is essential for responsible banking. In this stage, banks conduct a thorough portfolio analysis to understand impacts of key financed sectors on global, regional and national sustainability priorities. Monitoring and transparently reporting their findings, banks identify greatest positive and negative impacts, forming a baseline for acting upon areas where the greatest change can be achieved.

 

Explore the elements of the Assessment cornerstone below:

Banks conduct an impact analysis of their portfolio to understand the relevant impacts of key sectors the bank is financing on the sustainability priorities of the society it operates in. Based on this understanding, the bank can identify and begin to manage relevant risk, define priority and relevant sustainability areas for their strategy and action, develop better advice and support to clients, and strategically position for business opportunities contributing to sustainability objectives.



                    

                

            

                    


                

                    
                


                

                    

                        


Responsible banks are transparent about their activities, disclose information about their impacts and contributions to society’s goals and continuously monitor progress of their sustainability objectives and strategy. Transparency helps stakeholders to gather relevant information about banks’ performance and compare them to their peers, while monitoring enables banks to continuously track progress and thus manage their sustainability strategy and actions.








                    

                

            

                    

                    

    


 

    

    

    
    

            
            
        

    


        

            

            








Click on visual to expand






Strategy – Focus where it matters most


Strategic sustainability management is crucial for managing impact and risks, seizing market opportunities and aligning with key frameworks. Responsible banks develop and translate their sustainability ambition into measurable targets, in line with scientific findings and effective practices in the market. They also establish essential governance structures to ensure accurate consideration of the impact and opportunities of sustainability action within its financing activities.






 


Explore the elements of the Strategy cornerstone below:

    

    

                        

                    


                

                    
                


                

                    

                        


Responsible banks align their business strategies to be consistent with and to contribute to individuals’ needs and society’s goals, as expressed in the SDGs, Paris Climate Agreement, Kunming-Montreal Global Biodiversity Framework, UN Guiding Principles for Business and Human Rights, as well as relevant national and regional frameworks. Banks with robust sustainability strategies are credible client transition partners, while also positioning their own institutions for long-term success.








                    

                

            

                    


                

                    
                


                

                    

                        


Against challenging market conditions and tensions, it is more important than ever for financial institutions to reinforce their sustainability commitments through well governed action. Effective governance is important to meet existing impact targets and actions. Research shows strong performing governance has a bearing on risk management and business opportunity outcomes, while good governance supports more consistent delivery against organizational objectives and targets.










                    

                

            

                    


                

                    
                


                

                    

                        


Banks set SMART and ambitious targets and progress objectives, designed to respond to the needs of society and to close national, regional and/or global sustainable development gaps. Banks prioritize areas to set targets in, focusing on where it matters most so they can directly address the positive and negative impacts of their business activities and ensure clear alignment between sustainability strategies, the UN SDGs, Paris Climate Agreement and regional/national frameworks.








                    

                

            

                    

                    

    


 

    

    

    
    

            

            
        

            
        

    



 


 


 

        

            

            








Click on visual to expand






Action – Supporting clients, financing change


Banks’ action or transition plans outline the measures their organization will take to achieve their targets, including defining policies and process, working with clients and customers, leveraging stakeholder and partner relationships and proactively steering the portfolio composition to scale up financing for the sustainability transition. Strategic delivery of transition and action plans is vital to improving bank performance, mitigating risk, enhancing market reputation, driving competitive advantage and fostering a culture of innovation and creativity. 






 


Explore the elements of the Action cornerstone below:

    

    

                        

                    


                

                    
                


                

                    

                        


An action or transition plan outlines how the bank will shift its operations, investments, and services to align with sustainability goals. Consisting of the four categories (Policies, processes and culture; client engagement; portfolio composition and financing; stakeholder engagement and partnerships), it determines the measures and milestones to reach sustainability targets.








                    

                

            

                    


                

                    
                


                

                    

                        


Responsible banks establish policies, systems and procedures with effective (risk) management systems and controls, integrating sustainability objectives and targets into decision making processes across their banks. Leadership buy-in and a business culture in which employees understand their role in delivering the bank’s purpose will enable the bank to respond to global challenges with the speed and scale, enhancing customer satisfaction and responding to clients’ transition needs quickly.










                    

                

            

                    


                

                    
                


                

                    

                        


Banks’ key contribution to reaching sustainability goals is to provide the capital necessary for the sustainability transition. Developing business opportunities and provide financing for sustainable business models, projects, activities and companies helps banks position themselves in an economically sustainable manner, while contributing to filling the sustainability finance gap.








                    

                

            

                    


                

                    
                


                

                    

                        


As economic intermediaries, banks can make their most significant contributions to society’s goals by creating synergies with clients, encouraging sustainable practices, and accompanying clients in their transition towards more sustainable business models and technologies. Essential for assessing a bank’s impacts, understanding its risks and opportunities and achieving sustainability targets, this also creates a clear business case by opening up new financing opportunities and business areas.










                    

                

            

                    


                

                    
                


                

                    

                        


The scale of change necessary to meet global sustainability goals requires joint action and partnerships. By partnering with relevant stakeholders (notably peers, investors, clients, customers, regulators, employees, policymakers, suppliers, scientists, academia, civil society, trade unions and communities), banks can significantly increase the impact of their actions and support action at the scale of change required. Proactively engaging ensures there are no challenges down the line.








                    

                

            

                    

                    

    


 

    

    

    
    

            

            
        

            
        

    



 


 

        

        

    



 


Key Resources