KUALA LUMPUR (Nov 26): The United Nations (UN) Environment Programme Finance Initiative (UNEP FI) and 28 banks from around the world including CIMB Group Holdings Bhd today launched the principles for responsible banking for global public consultation, which define the banking industry's role and responsibilities in shaping a sustainable future.

According to CIMB and UNEP FI, signing the principles for responsible banking is something that all banks that are genuinely committed to sustainability should consider, regardless of their starting points.

"By committing to the new framework, banks will be aligning their business with the objectives of the sustainable development goals (SDGs) and the Paris Climate Agreement," they said in a joint statement today.

"With differentiated requirements for starter, intermediate and advanced banks on sustainability integration and detailed implementation guidance, they provide an entry point for early stage banks while creating a race to the top among those most advanced," they added.

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 to portfolio to transaction level.

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.

CIMB and UNEP FI said by signing the principles for responsible banking when they are launched in September next year, the 28 banks, which represent over US$17 trillion (RM71.24 trillion) in combined assets, will commit to being publicly accountable for their significant positive and negative social, environmental and economic impacts.

"They 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.

"By developing the set of principles, the 28 founding banks set out a clear purpose for the banking industry itself, and also enable investors, policy makers and regulators, clients and civil society to compare banks and hold them accountable for their environmental, social and economic impacts and their contribution to society's goals," they added.

And banks that continuously fail to meet transparency requirements, set adequate targets and demonstrate progress will face removal from the list of signatories.

"CIMB has always emphasised value creation which requires a delicate balancing of the long-term interests of our people, planet and profitability. To that end, we are pleased to commit to the UNEP-FI objectives to champion responsible banking and help transform global banking practices," said CIMB Group Holdings Bhd group chief executive officer Tengku Datuk Seri Zafrul Aziz.

"We firmly believe that as an industry that plays an instrumental role in economic growth and global trade, together banks could be a powerful force for change, to create a huge positive impact not just economically, but also socially and environmentally," he added.