As we celebrate the 15th anniversary of the Global Alliance for Banking on Values (GABV), we reflect on our journey to redefine finance as a force for good. Since its founding in 2009, the GABV and its member banks have placed people, planet and shared prosperity at the core of the banking activity. Today, we are proud to honour the impact of values-based banking, which has improved millions of lives worldwide while proving that banking can drive positive systemic change.

A Vision for Change

The GABV was founded by ten pioneer banks that believed in the need for a fairer, more inclusive and greener financial system. A system with the power to address critical issues like poverty, inequality and environmental sustainability. Today, the GABV has grown into a global movement of over 70 financial institutions across 45+ countries that collectively manage USD 265 billion in assets.

This diversity strengthens our movement; our alliance includes a broad spectrum of financial institutions, from banks to credit unions, microfinance organisations and cooperative lenders. Though varied in size, structure, and geography, these members share a common purpose: to harness banking as a tool to transform lives for good.

Our model

At the heart of the Banking on Values movement is a holistic approach to banking for good. Business decisions start by identifying a human need to be met and then establishing how to meet that need in a way that is sustainable from an environmental, social and economic perspective, including sustainable profitability for the bank. This vision recognises that we are economically interdependent and responsible to current and future generations and that we must find local solutions to global problems.

While the members are heterogeneous in terms of their business models, their size, and the markets they operate in, they share the six Principles of Values-Based Banking, which are the foundation of our movement and distinguish how values-based banks are different:

• Triple Bottom Line Approach: GABV members place the triple bottom line – people, planet and prosperity – at the core of business. This means that values-based banks do not just avoid doing harm, they actively use finance to do good.

• Real Economy: We focus on serving the real economy, supporting businesses and communities that create real value and contribute to wealthy and inclusive societies. Values-based banks primarily finance small and medium-sized enterprises, social businesses and community development projects.

• Client-Centered: Our member banks place considerable importance on creating long-term relationships with their clients. They listen to their needs, provide personalised services, and offer financial solutions tailored to their goals and values. This also implies developing a deep understanding of their economic activities and the risks involved.

• Long-Term Resiliency: We believe that banking should be about building long-term relationships and creating sustainable value, rather than just chasing short-term gains. Our members take a long-term view when making decisions, focusing on stability and resilience in case of external disruptions.

• Transparency: We believe that transparency is essential to build trust and accountability in banking. Our members are committed to being open and transparent in their operations, governance, and decision-making processes. This means actively engaging with stakeholders, seeking their input and providing clear and timely information about their performance.

• Culture: The principles and values that make up our model are reflected in the leadership practices, corporate culture and the organisation of a values-based bank. This culture of critical thinking and values-based decision-making is supported by human resources policies and practices that aim to foster employee development and well-being.

Leadership and Capacity Building

From the start, leadership has been a cornerstone of the Banking on Values movement, with CEOs positioned as the key drivers of change. Our network provides a platform for collaboration and mutual support among executives committed to systemic transformation. The GABV Annual Meeting stands as a flagship event, bringing senior leaders together each year in what is a unique opportunity for exchange, inspiration, and learning.

While CEOs have remained the backbone of the movement, we have recognised the importance of engaging Board members and other C-Suite executives, who are instrumental in advancing the values-based mission, particularly during leadership transitions. Additionally, through dedicated training programmes and our communities of practice, we’ve expanded our reach to practitioners in different areas within our member banks.

Programmes like the GABV’s Leadership Academy and Academy for Values-Based Governance equip emerging leaders and non-executive directors, respectively, with the knowledge and tools to embed sustainability, ethics and social responsibility into their daily practices and decision-making. The GABV also drives collaboration and innovation through specialised communities of practice in areas like Marketing, Human Development and Impact Strategy. Together, we are building a financial system that transforms lives.

A Legacy of Research

For over a decade, between 2011 and 2021, the GABV has been at the forefront of producing critical research and case studies that shed light on the impact and resilience of values-based banking. Our Annual Research Report, comparing the performance of systemic banks with values-based banks, highlights the social and environmental benefits of applying our model. These insights have been instrumental in demonstrating the viability and impact of values-based banking.

In 2019 this approach was applied to the research “Do sustainable banks outperform?”, a collaborative research effort initiated by the GABV in collaboration with the European Investment Bank (EIB), Deloitte and KKS Advisors. This research found commercial banks with good performance on material environmental, social and governance (ESG) issues financially outperform those with poor performance on the same issues.

Advocating for Fossil-Free Banking

The GABV has also emerged as a leader in climate-conscious finance, helping to advance initiatives such as the Climate Change Commitment (3C). The 3C is a member-led initiative committing its signatories to assess and report the greenhouse gas emissions of their loans and investments as a key step to aligning with the Paris Climate Goals and contributing to a just transition.

The GABV has been a catalyst to globalise the Partnership for Carbon Accounting Financials (PCAF); a methodology to assess and disclose financial institutions’ greenhouse gas emissions.

By committing to use PCAF across the world, GABV members have helped PCAF to become the standard for the financial industry and a prerequisite to set targets and start decarbonising portfolios.

GABV’s pioneering work as a leader in climate finance was recognised by the Finance for the Future Awards, in partnership with the Institute of Chartered Accountants in England and Wales (ICAEW), Accounting for Sustainability and Deloitte, during the year. The GABV qualified as a finalist for the ‘Driving Change in the Finance Community’ category.

More recently, the GABV has become the first financial network to publicly support the Fossil Fuel Non-Proliferation Treaty, with 25 member banks endorsing the initiative. Collectively, these signatories manage USD 117 billion in assets, serve over 11.3 million people worldwide and finance over USD 7 billion in clean energy projects. We have also brought the voice of values-based banking to the United Nations Climate Change Conference, COP29, where we have participated as Observer NGO for the third year in a row.

Setting the Standard in Values-Based Banking

In addition, we have developed the GABV Scorecard, a unique tool that structures and captures the vision, strategy and practice of values-based banking. The scorecard provides a snapshot of where an organisation is on its values-based journey, and may flag what next steps are needed to move the institution further along in its transformation. The GABV Scorecard is designed to assess new members or help existing member to measure two key characteristics that define values-based banking: focus on serving the real economy and a Triple Bottom Line approach.

The GABV Scorecard can be used by any banking institution and is based on the Principles of Values-based Banking. It has inspired conventional and member financial institutions alike, including Malaysia’s Central Bank, to examine what values-driven finance means.

In 2023, the GABV Scorecard was used as a tool to analyse Spanish mainstream banks who have committed to the UNEP-Fi Principles of Responsible Banking.

Through these efforts, the GABV has brought values and purpose as driving forces of impact and sustainability continues to transform lives and drive meaningful change for future generations.

A Guide to Social Impact: Lessons from Frontrunners

Under the VALoRE (Values Regulation Europe) project, the GABV has advocated for the inclusion of green and social impact objectives in the European Union regulation for Sustainable Finance. Together with our members and other partners, in 2022 we called on the European Commission to be more ambitious and prioritise public interest in its social taxonomy.

The VALoRE project aimed to strengthen the capacity of the financial sector in Europe to deliver a just transition to a low carbon, socially inclusive future. The project has been funded by the Open Society Foundations as part of the Open Society Initiative for Europe research programme (OSIFE).

As part of the VALoRe project, the GABV prepared three case studies and an exploratory study on how values-based banks create social impact and transform their markets. The findings have practical implications for all types of financial institutions and policymakers to improve how they address social challenges and create a more resilient and transformative financial system.

A Commitment for Peace

The connection between financial systems and global conflict is deeply entrenched, as highlighted in the report ‘Finance for War, Finance for Peace’, launched at the GABV’s 2024 Annual Meeting in Italy. The research sheds light on the USD 1 trillion funnelled into defence sectors by major financial institutions between 2020 and 2022. By contrast, values-based banks have adopted exclusion policies, deliberately avoiding investments in the production and trade of arms.

During the annual meeting, the GABV also issued the Milan Declaration: A Statement for Peace, condemning violence and urging mainstream financial institutions to divest from the arms sector. Instead, the Declaration calls for investment in building resilient, sustainable and inclusive economies.

Looking to the Future

As we celebrate the GABV’s 15th anniversary, our commitment to transforming lives and redefining the role of banking has never been stronger. Looking back, our work has focused on creating a banking system that serves the common good, transforms communities, and safeguards the planet for future generations.

Looking ahead, we plan to grow our network, inviting more financial institutions to join this movement and amplifying our global impact by strengthening collaboration among members and engaging with mainstream banks.

We will raise our profile and take a seat at the table for critical discussions on values-based and sustainable finance, addressing urgent issues like climate change, biodiversity, equity, and social justice. Additionally, we will highlight the importance of governance rooted in values and purpose—the “G” in ESG—ensuring that financial institutions are held accountable to the communities they serve. Together, we will contribute to shape a more inclusive, sustainable, and just future for global banking.