Banks and bankers can save the world

Since 1875, the Chartered Banker Institute - the oldest institute of bankers in the world - has played a leading role in helping finance professionals develop and demonstrate the traditional banking values of stewardship, thrift, prudence and professionalism. Our early appreciation of the importance of strong professional and ethical values in banking has established us as a trusted and distinctive voice in the UK and internationally.

More recently, the global financial crisis demonstrated - by their absence in some parts of our sector - just how important these universal principles are if our profession is to rediscover its sense of social purpose and reconnect banks and bankers with the customers, communities and societies we serve.

One of the ways we can best do this is for our profession to play a leading role in the transition to a sustainable, low-carbon and socially just world by putting stewardship in the broadest sense at the heart of banking. Our founders stressed the importance of financial stewardship - of banks being stewards of depositors? funds. Now we speak of stewardship of people and the planet - but it's still the same principle at heart.

Green and sustainable finance principles and practice must form the foundation for the future of banking and financial services. While the interest in green finance from regulators and policymakers is very welcome, it is customer and client demand - and demand from our colleagues - that will ultimately reshape our sector to align fully around green finance.

Change is led, ultimately, by individuals and not by organisations. The change we seek in mainstreaming green finance principles and practice needs to be led by increasing numbers of finance professionals. Professionals with an understanding of the critical role of financial services in supporting the transition to a low-carbon world are needed - as set out in the Paris Agreement. Professionals with the knowledge and skills of finance to be able to develop and deploy products, services and tools that will mobilise capital to support the transition and address climate-related risks. The ability to direct customers and communities toward investments that exploit green finance opportunities.

Developing the green finance knowledge and skills of finance professionals will help support the mainstreaming of green and sustainable finance which is why we are extremely proud to be the first educational body in the world to incorporate the UN Principles for Responsible Banking into our qualifications, via our foundation Professional Banker Certificate, and benchmark the Green Finance Certificate - the world's first such qualification.

The opportunity green finance provides for our finance sector and finance professionals should not be underestimated; it is the opportunity not just to trade profitably, but to play a key role in solving our greatest global challenge. Playing a proactive role in supporting (and, at times, leading) the transition to a sustainable, low-carbon world will help demonstrate a positive social purpose for financial services, help reconnect banks and society, and contribute to the process of rebuilding trust in the financial sector overall.  Banks and bankers really can save the world!

 

Simon will be speaking at the upcoming UK Finance Climate Risk, Green Finance, and Sustainability Conference on  5 November, click here to view the agenda.