Principles of
Responsible
Banking
03
01
Table of contents
The Six Principles of RB The History of Development
Implications of PRB PRB vs. ESG
02
04
The Six Principles of
Responsible Banking
01
You can enter a subtitle here if you need it
The Six Principles of Responsible Banking
1. Alignment 2. Impact & Target Setting
• Align business strategy
with individuals’ needs
and society’s goals (as
per SDG,PCA and others)
• Increase positive impacts &
reduce negative impacts
• Manage risks
• Set and publish target
3. Clients & Customers 4. Stakeholders
• Work with clients & customers for
sustainable practices, shared
prosperity for current & future
generations
• Proactively and responsibly
consult stakeholders for
society’s goals
5. Governance & Culture 6. Transparency & Accountability
• Effective Governance
• Culture of Responsible Banking
• Periodically review individual & collective
implementation
• Transparent and accountable for impacts &
contribution to society’s goals
The History of PRB
02
You can enter a subtitle here if you need it
The Development of PRB
6
1999
1992
Launch of UNEP for
Bank
New Regulation BIS III
1. Introduction of the concept
of Climate Risk
2. The need for Environmental,
Social and Governance
1991
Launch of UNEP FI
2003 2008
6
Creation of 3 groups
1. Climate Change Group
2. Asset Management Group
3. Environmental Management
& Reporting Group
2010
The Equator
Principles
assessing
environmental and
social risk in
projects
COP-9. Creation of
1. Sustainable Energy Financial Initiative
2. The group’s publication “CEO Briefing on
Emissions Trading”
The Development of PRB
7
2018
2016
High-level UNEP FI
Principles of Positive
Impact Finance
How bank can
contribute to UN SDG
2015
COP-21
UNEP FI began to develop
Task Force for Climate-
Related Financial
Disclosure (TCDF)
2019
7
TCDF pilot program
Implementation with
16 partner banks
UN General Assembly
The Principles of Responsible
Banking launched
Feb
2021
Signatory Banks
200 Banks joined the PRB
Implications of PRB
03
Effect of PRB and prediction of the future
Implications
Short-term loss
of revenue
Increased
operational cost
Banks will not be able to
give loans to coal power
plants and fossil
fuel operations
Technology
integration
Organizations need to
spend more to assess and
monitor activities so that
they conform with PRB
Banks will try to
apply technologies to utilize
cost in long-term
The future of PRB
Question: Are PRB going to work?
Non-binding nature Inclusion Adoption
PRB is just an initiative
and without consequences on
violation
Banks with a high ratio of non-
green customers in their portfolio
is disincentivized to join.
Measuring reduction in GHG
emissions and controlling the
activities of customers can be very
difficult in practice
Our view: Nope
PRB versus ESG
04
A comparison of two popular terms
Applicable only to the banking
industry
Defines the principles to follow
PRB vs ESG
Established by some banks + the UN
Applicable to all kinds of businesses
Defines the aspects to improve
Coined by a reporter, endorsed by
some financial institutions & the UN
PRB ESG
$290,000
Mars is actually a cold place
$45,000
Venus has a beautiful name
$22,000
Saturn has several rings
$28,000
Mercury is the smallest planet
About the terms of the agreement
Venus is the second planet
from the Sun
Venus
Despite being red, Mars is
actually a cold place
Mars
Follow the link in the graph to modify its data and then paste the new one here. For more info, click
here
Strategic alliances
Despite being red, Mars is
actually a cold place. It's full of
iron oxide dust which gives the
planet its reddish cast
● Country name
● Country name
● Country name
● Country name
Mars
What is your vision?
How to reach your vision?
What do you offer?
How big is the market?
Top 10 questions of business plans
What is your situation?
How to make a difference?
What is your marketing plan?
What are your economics?
What do you need to start?
Who are the key players?
1
2
3
4
5
6
7
8
9
10
CREDITS: This presentation template was created by
Slidesgo, and includes icons by Flaticon, and infographics &
images by Freepik and illustrations by Storyset
Thanks!

Responsible Finance Principles and Implication

  • 1.
  • 2.
    03 01 Table of contents TheSix Principles of RB The History of Development Implications of PRB PRB vs. ESG 02 04
  • 3.
    The Six Principlesof Responsible Banking 01 You can enter a subtitle here if you need it
  • 4.
    The Six Principlesof Responsible Banking 1. Alignment 2. Impact & Target Setting • Align business strategy with individuals’ needs and society’s goals (as per SDG,PCA and others) • Increase positive impacts & reduce negative impacts • Manage risks • Set and publish target 3. Clients & Customers 4. Stakeholders • Work with clients & customers for sustainable practices, shared prosperity for current & future generations • Proactively and responsibly consult stakeholders for society’s goals 5. Governance & Culture 6. Transparency & Accountability • Effective Governance • Culture of Responsible Banking • Periodically review individual & collective implementation • Transparent and accountable for impacts & contribution to society’s goals
  • 5.
    The History ofPRB 02 You can enter a subtitle here if you need it
  • 6.
    The Development ofPRB 6 1999 1992 Launch of UNEP for Bank New Regulation BIS III 1. Introduction of the concept of Climate Risk 2. The need for Environmental, Social and Governance 1991 Launch of UNEP FI 2003 2008 6 Creation of 3 groups 1. Climate Change Group 2. Asset Management Group 3. Environmental Management & Reporting Group 2010 The Equator Principles assessing environmental and social risk in projects COP-9. Creation of 1. Sustainable Energy Financial Initiative 2. The group’s publication “CEO Briefing on Emissions Trading”
  • 7.
    The Development ofPRB 7 2018 2016 High-level UNEP FI Principles of Positive Impact Finance How bank can contribute to UN SDG 2015 COP-21 UNEP FI began to develop Task Force for Climate- Related Financial Disclosure (TCDF) 2019 7 TCDF pilot program Implementation with 16 partner banks UN General Assembly The Principles of Responsible Banking launched Feb 2021 Signatory Banks 200 Banks joined the PRB
  • 8.
    Implications of PRB 03 Effectof PRB and prediction of the future
  • 9.
    Implications Short-term loss of revenue Increased operationalcost Banks will not be able to give loans to coal power plants and fossil fuel operations Technology integration Organizations need to spend more to assess and monitor activities so that they conform with PRB Banks will try to apply technologies to utilize cost in long-term
  • 10.
    The future ofPRB Question: Are PRB going to work? Non-binding nature Inclusion Adoption PRB is just an initiative and without consequences on violation Banks with a high ratio of non- green customers in their portfolio is disincentivized to join. Measuring reduction in GHG emissions and controlling the activities of customers can be very difficult in practice Our view: Nope
  • 11.
    PRB versus ESG 04 Acomparison of two popular terms
  • 12.
    Applicable only tothe banking industry Defines the principles to follow PRB vs ESG Established by some banks + the UN Applicable to all kinds of businesses Defines the aspects to improve Coined by a reporter, endorsed by some financial institutions & the UN PRB ESG
  • 13.
    $290,000 Mars is actuallya cold place $45,000 Venus has a beautiful name $22,000 Saturn has several rings $28,000 Mercury is the smallest planet
  • 14.
    About the termsof the agreement Venus is the second planet from the Sun Venus Despite being red, Mars is actually a cold place Mars Follow the link in the graph to modify its data and then paste the new one here. For more info, click here
  • 15.
    Strategic alliances Despite beingred, Mars is actually a cold place. It's full of iron oxide dust which gives the planet its reddish cast ● Country name ● Country name ● Country name ● Country name Mars
  • 16.
    What is yourvision? How to reach your vision? What do you offer? How big is the market? Top 10 questions of business plans What is your situation? How to make a difference? What is your marketing plan? What are your economics? What do you need to start? Who are the key players? 1 2 3 4 5 6 7 8 9 10
  • 17.
    CREDITS: This presentationtemplate was created by Slidesgo, and includes icons by Flaticon, and infographics & images by Freepik and illustrations by Storyset Thanks!