Signatory banks of the Principles for Responsible Banking (PRB) align their business strategy and practice with the UN Sustainable Development Goals and the Paris Agreement by following three key steps: impact analysis, target setting and reporting.
Once they finish analysing their impacts, signatory banks are required to set a minimum of two amibitious and Specific, Measurable, Achievable, Relevant and Time-bound (SMART) targets to address at least two different areas of most significant impact. Key performance indicators (KPIs), milestones and action plans must also be set and disclosed to monitor progress against targets.
This document contains ten frequently asked questions and detailed answers as banks set targets during their 4-year PRB journey. It aims to clarify the target setting step embedded within the Principles for Responsible Banking, and help banks comply with the requirements of the Principles.