Amsterdam, 16 November – A new report by the Global Alliance for Banking on Values (GABV) and Nyenrode Business University (Netherlands) shows how values-based practices can drive system wide change in the banking sector. “Think Bolder: Think Values-based Banking – Best Practices for Sustainable Market Transformation in the Financial Sector” unpacks nine distinctive practices of values-based banks and their unparalleled impact on transforming banking and finance within their communities and regions.
The report was presented during Banking on Values Day, an annual event which seeks to reaffirm the crucial role that banks can play as a force for good. It encapsulates a comprehensive analysis of nine practices derived from values-based banks that pave the way for a more sustainable and inclusive financial sector.
Adriana Kocornik-Mina, Sr Manager of Metrics and Research, GABV and co-author of the report:
“For decades values-based banks have financed positive impact, proving that non-extractive finance is possible and viable. We believe that the integration of these nine practices within the broader financial landscape will not only foster positive social and environmental change but will also prompt policy reforms and wider adoption by conventional.”
A pathway to transform banking
These practices span a spectrum of transformative measures, including impact-based screening, radical knowledge sharing, intentional positive impact decision-making, and inclusive financial offerings targeting societal actors contributing to positive change.
One of the key aspects outlined by the report is the comparison between ESG (Environmental, Social, and Governance) criteria adopted by traditional banks and the comprehensive Triple Bottom Line (TBL) approach embraced by values-based banks. This delineation underscores the necessity of going beyond ESG criteria towards a banking model centred on enabling positive societal and environmental outcomes.
Since its inception in 2009, the Global Alliance for Banking on Values has been at the forefront of catalysing transformative initiatives within the financial industry. One of its seminal initiatives, the Climate Change Commitment (3C), embarked on during the organisation’s 10-year anniversary in Vancouver, mobilised signatories towards assessing and disclosing the climate impact of their portfolios, aligning them with the Paris Agreement. This initiative has laid the foundation for substantial transformations within the sector. Additionally, the GABV’s collaboration with the PCAF (Partnership for Carbon Accounting Financials) led to the global adoption of the PCAF Standard, further cementing the organisation’s role in steering the financial sector’s transition.
“Think Bolder | Think Values-based Banking” is a culmination of extensive research examining the distinct practices of values-based banks, members of the GABV. It presents a roadmap for systemic change in the financial market, encouraging the integration of values-based banking practices across the industry. The authors emphasize the need for a paradigm shift towards an organisational culture that prioritizes the values-based principles advocated by the GABV.
About the Global Alliance for Banking on Values
The Global Alliance for Banking on Values (GABV) is a network of independent banks using finance to deliver sustainable economic, social and environmental development. The GABV comprises 70+ financial institutions operating in 45 countries across Asia, Africa, Australia, Latin America, North America and Europe. Collectively they serve more than 60 million customers and hold over USD 210 billion of combined assets under management. Learn more at gabv.org
About Nyenrode Business University
Nyenrode Business University is a private university in the Netherlands and was founded by and for the business community as N.O.I.B. in 1946. Today, the university provides academic bachelor and master programs and Executive Education & Organizational Development programs. The university also offers individual PhD tracks for doctoral students. Nyenrode Business University is housed on two campuses: one on the estate in Breukelen and one in the city centre of Amsterdam. www.nyenrode.nl/en/
For media enquiries, please contact:
Head of Communications & Marketing, GABV