The banking sector advances in the implementation of the six Principles of Responsible Banking in its daily operations

The financial sector is holding a conference to analyze its important role in the face of social and environmental challenges.

Experts from the financial sector, investors, the business world, NGOs, and authorities addressed today in Madrid the challenges faced by banks to comply with the Principles of Responsible Banking, an initiative of the United Nations Environment Programme (UNEP FI) that establishes a global standard for what constitutes a responsible bank and represents the first global framework in the sector to incorporate sustainability into all areas of business.

Through their adherence to the Principles of Responsible Banking, around fifty signatory banks, including Spanish entities such as Santander, BBVA, CaixaBank, and Bankia, have formalized their commitment to align their business activities with the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement on climate change.

According to the president of the Spanish Banking Association (AEB), José María Roldán, “the great challenge now is how to apply the six principles in the daily operations of banks. Once again, banks will have to make a great effort to undertake the transformation required by these Principles. Deep changes in management, decision-making processes, organizational culture, and the development of responsible and ethical leadership capacities are needed.”

“Despite these new demands, our banks will not miss this unique opportunity to be recognized as a leading player in building a fairer and more sustainable society that we all desire,” Roldán emphasized during the event ‘Principles of Responsible Banking and their impact on society’ organized by AEB and CECA.

The president of AFI, Emilio Ontiveros, highlighted in his presentation that “Spanish banking has the chance to take on the challenge of integrating climate change-related risks into its activities, just as central banks and supervisors already do, who evaluate the impact of these risks on financial stability.” These risks, associated with climate change, “are unique and analytically complex, given that their temporal distribution and the estimation of their probabilities are not easy,” he added.

In Ontiveros’ opinion, “the investment community is increasingly aware of these demands, and the banking sector, rather than acting reactively, can lead the adaptation to these new criteria. Preferences for green financing modalities, from bonds to other types of credit investment, represent an opportunity already being seized by some Spanish companies.”

The general director of CECA, José María Méndez, who closed the day, assured that “building a more sustainable economy will be key in the next decade: sustainability in all its social and environmental dimensions must become an integral part of our economy.” He further explained that today the debate on sustainability is very focused on ensuring the achievement of the UN Sustainable Development Goals (SDGs) for 2030, and that meeting these goals will require continuous effort and the participation of all parties.

You can access the Principles of Responsible Banking here.