NAIROBI, Kenya, Nov 26 – KCB Group and 28 other global banks representing US$17 trillion in combined assets have launched the Principles for Responsible Banking in Paris, France.
In a statement, KCB says the principles will define the banking industry’s role and responsibilities in shaping a sustainable future.
The six principles selected include alignment, impact, customers and clients, stakeholders, governance and culture, transparency and accountability, and speak to banking business and culture aligned to Climate Change, Sustainable Development Goals (SDGs), and relevant national and regional frameworks themes.
“The principles set the global standard for what it means to be a responsible bank and will ensure that banks create value for both their shareholders and society. They provide the first global framework that guides the integration of sustainability across all business areas of a bank, from strategic, portfolio to transaction level,” KCB Group CEO and MD Kenya, Joshua Oigara said.
By signing the Principles for Responsible Banking when they are launched in September 2019, banks will commit to being publicly accountable for their significant positive and negative social, environmental and economic impacts.
They will also agree to set public targets on addressing their most significant negative impacts and scaling up their positive impacts to align with and contribute to national and international sustainable development and climate targets.
“We believe responsible business is about establishing and nurturing the foundation of growth for the next generations. To succeed, banks need to bring their written policies into action through strategy for creating long-term value through sustainable banking. KCB Group believes that these principles will create a path towards achieving sustainable financial success and widen the door to financial freedom,” he added.
The principles are now entering a six-month global public consultation period before they will be signed by banks from around the world at the United Nations General Assembly in New York in September 2019.
Banks and stakeholders around the world are invited to provide feedback and input to guide their further development, and to signal their support by becoming Endorsers of the Principles for Responsible Banking.