Forum Views - May 2023
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FORUM VIEWS - MAY 2023
bankers that will need to be trained every year if climate and
other sustainability commitments are to be achieved. Studies in
other countries point at these skills gaps: in Ireland , 67% of
respondents said supply of staff was inadequate, and upskilling
was required; in Hong Kong , more than 40% of respondents
said they “believed this area would suffer from a future
shortage of expertise”. The G20, which is now under the
presidency of India, has also realized the importance of capacity
building as a priority, and its working groups target sustainable
finance capacity building. Therefore there is a very clear need to
support initiatives that can enable banks to meet their
sustainability challenges.
With over 320 signatory banks representing almost half of the
global banking industry, the UN’s Principles for Responsible
Banking put the aforementioned double materiality concept to
its centre. These Principles aims to accelerate a positive global
transition for people and the planet, by urging and supporting
banks to align their business with goals such as those set by
the Sustainable Development Goals and the Paris Agreement.
Principle 2 of the Principles expresses the need for continuously
increasing positive impacts while reducing the negative
impacts resulting from banks’ activities, products and services.
Accordingly, banks are to set and publish targets where they
can have the most significant impacts. A growing number of
Asian banks are part of the Principles for Responsible Banking:
there is a total of 50 signatories from Asia as of March 2023.
Operating as a responsible bank that maximizes its net positive
sustainability impact comes with several challenges, so the
aforementioned skills gap is obviously there. The United
Nations’ Environment Program Finance Initiative (UNEP FI)
deliberately intends to provide the necessary support to
signatory banks to deliver on the commitments. Member banks
have access to a wealth of guidance documents, handbooks
and practical tools that enable impact analysis and target
setting in key sustainability areas.
Signatory banks can also participate in a wide range of capacity
building programs. In Autumn 2022, banks in the Asia-Pacific
region participated in a climate target-setting program, learning
how banks can set and implement mid- and long-term climate
targets for their portfolios in line with the Paris Climate
Agreement while taking into account their countries’
development pathways and the principle of just transition.
Also, in early 2023 the PRB Academy had an in-person
conference and training in Mumbai, India. This Academy has
been developed by UNEP FI in partnership with GIZ and the
Chartered Banker Institute. The training pilot in India was
delivered in collaboration with the Indian Institute of Banking &
Finance (IIBF) with the goal of equipping bankers with the
expertise and tools necessary to address the triple planetary
crisis of climate change, nature loss, pollution and related social
issues. More than 150 banking professionals from different
departments including more than twenty CEOs and board level
members from both public and private sector banks across
India took part in this pilot. The high-level event included
remarks by Mr. Saurav Sinha, ED, RBI and Mr. Sunil Mehta,
The UN’s Principles for Responsible Banking
Supporting banks so that they can support the transition
Chief Executive, Indian Banks Association (IBA), who
highlighted the significance of such capacity building
programmes in India.
Another key area of work for India is a new capacity building
program on financial health and inclusion for banks. This
programme aims to equip banks with the practical knowledge
to design targets and strategies that will ensure that
individuals, micro and small enterprises have access to banking
products and services via accessible channels, which are
affordable and effective, and where customers can smoothly
manage their current financial obligations and have confidence
in their financial future. The next capacity building program is to
be launched in May 2023, putting energy efficiency in the
focus.
The UNEP FI Regional Roundtable Asia Pacific will be held in
person on 24-25 May in Seoul, South Korea. The event will
convene UNEP FI members, policymakers, civil society
organisations, and academia to discuss the advancement of
sustainable finance, its challenges, and solutions in Asia
Pacific.
In addition to having the opportunity to network with the
finance community in the region, speakers and participants will
explore important issues specific to the region, including net-
zero banking and insurance, ASEAN taxonomies as guiding
frameworks for the finance sector, understanding and managing
nature-related risks, financial health and inclusion, and more.
UNEP FI is keen to engage with financial institutions and other
financial stakeholders in India to support them in their
sustainability journeys. In case of any questions, please feel
free to reach out to the APAC Regional Coordinator, Nirnita
Talukdar (nirnita.talukdar@un.org)
What is coming in India and in Asia?
1. See https://www.skillnetireland.ie/publication/future-sustainable-finance-
skills-report/
2. See https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines -
and-circular/2020/20200618e1a1.pdf
Gabor Gyura is UNEP FI’s global capacity building consultant, designing and
running training workshops for signatory banks of the Principles for Responsible
Banking. Besides his current consultancy role, since 2021 he also acts as part-
time assistant professor at the Budapest University of Technology and
Economics, teaching and researching sustainable finance. Previously he spent
15 years in financial services regulation in various areas and was founding head
of the Sustainable Finance Department at the Central Bank of Hungary. He has a
masters degree in Economics and also holds a PhD in Earth Sciences.
Co-Author: Nirnita Talukdar is the Regional
Coordinator- Asia Pacific, at UNEP- FI (The United
Nations Environment Programme Finance Initiative).
As a part of this role, she is leading the work on
implementation of UNEP FI’s strategy to mobilize
sustainable finance in Asia Pacific, and provides
support to financial institutions in their journeys
towards achieving the Paris Agreement Goals and
the SDGs.
She brings over 12+ years of experience working in the development sector with
thematic expertise in sustainable finance, along with proficiency in research on
financial sector accountability. Through her work, Nirnita has helped draw
attention to the bond market’s role in climate transition and has worked
extensively on strengthening the narrative and policies on sustainable finance in
Asia. She has coordinated research and co-authored publications on Asian cross-
border financial flows, health and safety of migrant workers, analysis of key non-
financial disclosure policies, among others.
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