October 10, 2022 – UNEP FI is pleased to launch the Impact Protocol for Banks, together with the latest Module of Version 3 of the Portfolio Impact Analysis Tool for Banks, marking the consolidation of a comprehensive suite of impact management tools for banks. .
In 2017 UNEP FIs Principles for positive impact finance propose a new and holistic approach to impact management by private financial institutions, which involves the systematic consideration of both positive and negative impacts on the three pillars of sustainable development (environmental, social and socioeconomic).
In 2019, UNEP FI launched the Responsible Banking Principles (PRB), which requires signatory banks to align their core strategy, decision-making, lending and investments with the Sustainable Development Goals and international agreements such as the Paris Climate Agreement. To achieve this, Principle 2 requires banks to carry out an impact analysis of their portfolios, to identify their most significant impact areas and set impact targets and action plans accordingly, to manage their positive and negative impacts.
The Impact Protocol provides a step-by-step overview of how to analyze and manage banking portfolio impacts based on UNEP FI’s holistic impact approach and in accordance with the requirements of the Principles for Responsible Banking.
Learn more about the Protocol here.
Portfolio Impact Analysis Tool: New Module
The UNEP FI impact analysis tools are the implementation of the holistic impact approach and methodology. Starting in 2022, the Tools are gradually moving to a ‘modular’ format, where the main components of the impact analysis are contained in different modules. The new modular format allows greater flexibility to accommodate a variety of user types.
The transition is now almost complete for the Bank Wallet Tool; After the launch of the Context and Identification Modules in July, the first Evaluation Module has been launched, for Institutional Banking portfolios. The evaluation module allows users to: measure and evaluate their current practice and impact performance, with a view to determining objectives and action plans accordingly. For PRB signatories, this will support efforts to meet the requirements of Principle 2 on impact analysis and goal setting.
A second Evaluation Module will be launched in November, for Consumer Banking portfolios, thus completing the collection.
Learn more about the tool here.