Launched today, UN Environment Programme Finance Initiative marks the release of the UN Principles for Responsible Banking’s third biennial progress report, “Responsible Banking: A Six Year Journey of Systemic Change.”
The report showcases a sector-wide shift in banking practices. It details how PRB signatories are increasingly moving from commitment to action, embedding sustainability into core business strategies, governance, and client relationships. Thereby, they better manage risk, meet stakeholder expectations, and remain competitive in an evolving economy challenged by climate change and where over 50% of global GDP is dependent on nature.
At the same time, it reveals a leadership group that significantly outperforms peers in its ESG ratings performance.
Over 350 banks – representing approximately 50% of global banking assets – are stepping up to implement the PRB, bringing together a community that can scale the approaches that it pioneers to global market practice. Through focused workstreams, banks jointly with UN experts, academia and civil society are developing new approaches, tools and resources for the banking sector that are credible, and practice-tested.
Analysis by both the MSCI Sustainability Institute and S&P show that PRB banks outperform their industry peers. For example, MSCI reported that 61% of PRB signatories lead their industry in managing financially material sustainability risks and opportunities (compared 23% of non-PRB banks) and PRB signatories paid one percentage point less on average for equity and debt capital[1]. This suggests that by better managing sustainability risks and aligning their business to support a more sustainable economy, banks increase their operational resilience.
“This third biennial progress report reflects the growing maturity of the PRB community. More banks are setting measurable targets—particularly on climate mitigation, supporting client transitions, and expanding access to financial services. Transparency on impacts is also improving, and considerations of biodiversity and resource efficiency are increasingly being integrated into policies, products, and decision-making. These developments signal an important shift in banking practice.
This shift is not happening in isolation. Central banks and regulators are increasingly recognizing nature-related risks as material to financial stability. Government-level agreements on chemicals and plastics are laying the groundwork for systemic action on key drivers of nature loss. Together, these developments reflect a growing consensus: environmental and social risks are not peripheral—they are material financial risks that demand urgent and coordinated response.”
—Inger Andersen, Executive Director, United Nations Environment Programme
Please download the full report here, as well as explore further resources and commentary here.
This panel will explore the financial implications of sustainability commitments, drawing on MSCI Institute’s analysis of signatories of the UN Principles for Responsible Banking. The discussion will highlight how responsible banking practices correlate with stronger ESG performance and lower cost of capital, with broader relevance across sectors and investment strategies.
Register for this upcoming PRI In Person event here
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[1] MSCI Institute: Do commitments matter?