Manifesto for Excellence in Green Commercial Banking
As the urgency of climate change intensifies, we, as members of the commercial banking sector, must rise to the challenge and take a leading role in advancing the transition to a low-carbon, sustainable future. As members of the Alliance for Green Commercial Banks (the Alliance), we are dedicated to achieving excellence in green commercial banking and aligning with a curated community that shares our values.
This manifesto outlines our direction to align our strategies with global climate goals, as we commit to integrating sustainability and climate considerations into every facet of our operations. The manifesto defines a Framework for Excellence in Green Banking (the Framework), that should guide our institutions toward meaningful progress, setting the stage for a transformative shift in how we operate, manage risks, engage stakeholders, and shape the future of finance.
The Alliance supports us with tools and resources, including the Green Banking Maturity Self-Diagnostic, to gauge our annual progress and identify areas for improvement. We fulfill our reporting obligations to demonstrate our collective progress, ensuring we meet the aspirations set out in the Manifesto. Together, we strive for excellence in green banking.
This manifesto does not define specific targets for each of our institutions; rather, it acknowledges that each of us will advance at our own pace. Our aim is to signal a clear call to action and make a collective declaration of intention as signatory banks to actively progress on the climate agenda. While our timelines and specific agendas may vary, our shared goal remains—to contribute meaningfully to addressing climate change and driving the global transition toward sustainability.
A key dimension of the Framework is the development of a green vision and strategy. We commit to making our best efforts to embed sustainability into our long-term business models, drive sustainable growth, ensure alignment with global decarbonization goals, and fight climate change for a livable planet. This involves gradually reducing our exposure to high-carbon industries while increasing our investments in renewable energy, sustainable infrastructure, and green technologies. By steering capital toward sustainable portfolios, we will play a crucial role in accelerating the global shift to a low-carbon economy and positioning ourselves as leaders in this transition.
To support this vision, we will enhance our climate governance. We commit to embedding environmental, social, and governance (ESG) principles at the highest levels of our decision-making. Establishing sustainability roles and committees will help ensure that our climate initiatives are effectively monitored and continuously improved. By progressing toward strong governance, we will align with regulatory expectations while also setting an example for responsible finance for other financial institutions to follow.
In this journey, we will make every effort to equip our employees with the knowledge and tools necessary to contribute to the green banking agenda. Training programs on climate-related topics are essential for embedding sustainability into our day-to-day operations. Cultivating a green culture that permeates all levels of our institutions is vital to ensuring that every employee, from frontline staff to senior leadership, embraces sustainability as a core value. Additionally, linking executive incentives to sustainability targets will drive engagement and long-term advancement toward environmental goals.
An evolving green business model is essential for our institutions. We commit to developing a suite of green financial solutions—such as green bonds, loans and mortgages, sustainability-linked loans, and impact-driven investment products amongst other—that promote environmentally responsible practices. These innovations will help businesses, individuals, and communities adopt greener approaches, advancing sustainability as a core component of the global economy.
To safeguard against the risks posed by climate change, we will integrate ESG and climate risk management into our broader risk frameworks. By incorporating both physical and transition risks, we will enhance our resilience in the face of environmental challenges. Climate stress tests, scenario analysis, and ESG risk assessments are essential tools in preparing for uncertainties while ensuring the financial system's stability.
Decarbonization, both in our operations and the broader value chain, is another key aspect of our roadmap. While we commit to reducing our own carbon footprints, our most significant impact will come from advancing decarbonization across the sectors we finance. Supporting our clients as they transition to low-carbon operations and setting measurable targets for reducing financed emissions will be crucial steps.
In this journey, data management and the use of advanced tools for sustainability are critical in tracking our progress and ensuring accountability. We will leverage technology to measure ESG performance accurately and in real time. Advanced data management tools and analytics will enable us to make informed decisions, meet evolving regulatory demands, and transparently report on our sustainability progress.
Finally, communication, alliances, and transparent reporting are key to fostering trust and collaboration. We commit to regularly reporting on our sustainability efforts and climate-related risks. Transparent communication with our stakeholders, including investors and regulators, will allow for continuous assessment of progress. Additionally, strategic alliances with industry peers, regulators, and sustainability initiatives will help amplify the impact of green banking and facilitate the collective advancement of global standards for sustainable finance.
Through a gradual and consistent approach that integrates a green vision, robust governance, capacity-building, innovative financial products, effective risk management, comprehensive decarbonization, advanced data tools, and transparent communication, we will lead the financial sector toward a more sustainable and green global econo