A leading global network of values-based banks calls upon the financial sector to back up its rhetoric with actions In the backdrop of the COP27 Climate Change Conference being held in Egypt (6-18 November),
The Global Alliance for Banking on Values (GABV) marked Banking on Values Day on 10 November 2022 by reaffirming the crucial role that banks have to play in tackling the root causes of climate change.
At the COP27 ‘Finance Day’, the GABV urged the financial sector, including values-based banks, to live up to its commitments. In last year’s COP26 Conference in Glasgow, UK, mainstream financial institutions issued welcome public commitments and declarations designed to tackle climate change and help facilitate the move towards net zero. One year later, many continue financing the fossil fuel industry at an industrial scale.
Martin Rohner, Executive Director, GABV: “Banking is never neutral - institutions make decisions about what they finance and invest in, and these have major impacts on the shape of our collective future. Over recent years, mainstream banks have increasingly positioned themselves around their social purpose and environmental goals. This rhetoric must be backed up by real commitments and action.”
Observing the day on 10 November in Dhaka, Bangladesh, on the sidelines of the Annual Meeting, the GABV and its members called out the increasing use of ‘greenwashing’ vocabulary in the financial industry. With the theme “Real Impact Behind the BIG Words”, the campaign focuses on how values-based banks mean what they say and deliver real impact. Selim R. F. Hussain, MD&CEO of BRAC Bank; Priscilla Sims Brown, CEO of Amalgamated Bank USA; and Damien Walsh, CEO of Bank Australia, took part in the discussion as the panellists.
Selim R. F. Hussain: “Collaborative effort is okay in sustainability. We must work closely with the industries and show the long-term positive impact that inspires them to commit themselves to real action. Through the observance of Banking on Values Day, we can disseminate the message to a larger audience and sow the seed of a sustainable banking movement in Bangladesh. Let us shape our vision and work together for the greater good and a better society.”
The GABV, made up of 70+ pioneering banks, credit unions and microfinance institutions from across the world, advocates for banks to take a pivotal role in shaping the economy, society and the environment.
Members of the GABV have pioneered and helped expand initiatives like the Partnership for Carbon Accounting Financials (PCAF), a harmonised, open-source tool to measure and disclose the greenhouse gas emissions (GHG) of financial institutions’ loans and investments.
The GABV has been recently recognised as a Climate Leader by the Finance for the Future Awards and will participate in COP27 as an Observer NGO.