Set SMART targets that address the significant impacts your bank has identified, and work towards achieving them.
After conducting the impact analysis in step 1, signatory banks must set at least 2 targets to address the significant impact areas they have identified. The targets need to be Specific, Measurable (quantitative or qualitative), Achievable, Relevant and Time-bound (SMART). This helps signatory banks directly address the positive and negative impacts of their business activities, and ensures clear alignment between signatory banks’ sustainability strategies and the UN Sustainable Development Goals and the Paris Climate Agreement.
In addition to setting ambitious targets, signatory banks must also set milestones, as well as define and implement actions to meet their set targets. Read more about this in the 3 key steps. 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 on best practice when setting targets. A FAQ document is also available to answer frequently asked questions on setting good targets for the Principles for Responsible Banking.
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.
Biodiversity: this working group published guidance in June 2021 on indicators, metrics, methodologies to help banks set biodiversity targets across activities in line with international frameworks and the Principles for Responsible Banking. Look out for details on the capacity building programme set to begin in Q4 2021.
Financial inclusion: this working group published guidance in May 2021, designed to support signatories to set targets for financial inclusion and financial health in alignment with the Principles for Responsible Banking. Banks are now working on a collective commitment which will be launched in December 2021.
Resource Efficiency: Launched in April 2021, this working group is developing guidance on indicators, metrics and methodologies for target setting on resource efficiency.