Banks join the sustainable finance movement

By 2019 , according to data from NatWast – a founding member of the UNEP Finance Initiative – a third of the world ’ s banks ( 197 ) had joined the Responsible Banking Initiative . Signatory banks have to commit to taking three key objectives to improve the impact of their services in a sustainable capacity .

Sustainable lending changes

By 2021 , the sustainable banking sector had developed strong regulatory practices surrounding lending . In May of that year , the rules around SLLPs ( Sustainability- Linked Loan Principles ) were further tightened and clarified to reflect key performance indicators that would fully support the sustainable banking objectives and borrower performance .

2023 and beyond

The future of sustainable finance involves going mainstream , with banks of all sectors launching new products that support the sustainability agenda . Customers at a grassroots level will be given the opportunity to select , or opt out of , products that offer personalised suggestions regarding purchases made and their environmental impact .

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