The Kenya Commercial Bank (KCB) Group with outlets in Uganda and the rest of East Africa said Monday it partnered with 28 other global banks to launch the Principles for Responsible Banking in Paris, France.
Over 12 CEOs attended the launch of the Principles to initiate public participation during the first day of the Global Roundtable meeting, the bank said in a statement sent to newsrooms.
The Principles will define the banking industry’s role and responsibilities in shaping a sustainable future. The six principles selected (alignment, impact, customers and clients, stakeholders, governance and culture, transparency and accountability) speak to banking business and culture aligned to Climate Change, Sustainable Development Goals (SDGs), and relevant national and regional frameworks themes.
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, portfolio to transaction level.
KCB said it has been actively involved in the drafting of the Principles alongside other global banks over the last eight months.
Speaking at the launch of the principles, KCB Group CEO Joshua Oigara said that his organisation believes in responsible business which according to him is about establishing and nurturing the foundation of growth for the next generation.
By signing the Principles for Responsible Banking when they are launched in September 2019, banks 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.
“We believe responsible business is about establishing and nurturing the foundation of growth for the next generations. To succeed, banks need to bring their written policies into action through strategy for creating long-term value through sustainable banking. KCB Group believes that these principles will create a path towards achieving sustainable financial success and widen the door to financial freedom,” he said.
By developing the set of principles, the banks set out a clear purpose for the banking industry itself aimed at enabling investors, policy makers, 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.