With the main goal of accelerating the transition towards a sustainable economy, Banking for Impact (BFI) has come together to help banks/financial institutions adopt new impact-reporting standards that account for social and environmental factors.
On June 3, 2022, the coalition published an Impact Measurement guidance document, following the launch of the Impact-Weighted Accounts Framework (IWAF). The BFI methodology proposes the necessary steps for the quantification, valuation, attribution, and aggregation of impacts for the financial sector. The reviewed version of the document integrates feedback from relevant stakeholders, improving the original publication of December 2021. The methodology will be updated on a rolling basis based on comments and suggestions from readers.
Recognizing the growing focus on impact and the need for high-quality and reliable impact measurement and valuation (IMV) data, the BFI’s guidance materials are carefully based on the principles set out in the IWAF, tailored to the specific challenges of IMV for the financial sector. This would greatly reduce the effort needed from financial institutions to assess their impact.
The consortium currently encompasses well-established banks such as the Dutch ABN AMRO, Denmark’s Danske Bank, Singapore’s DSB Bank, Switzerland-based UBS group, Spain’s CaixaBank, as well as other financial institutions like Harvard Business School’s Impact-Weighted Accounts, and the Impact Institute, a social enterprise pioneering new standards in integrated reporting. The alliance welcomes additional financial institutions that wish to become members of the working group and help mobilise funding to create a better form of capitalism – one that benefits people, planet, and the economy.
Other upcoming publications by the BFI initiative include relevant topics such as biodiversity impact. These publications are scheduled throughout the second half of 2022 and can be found on www.bankingforimpact.org.
Robert Swaak, CEO of ABN AMRO, member of BFI: “A company’s long-term license to operate depends on it creating value for all stakeholders – clients, employees, investors, and society at large. This is also true for ABN AMRO. As a bank, we certainly have an impact on our stakeholders. If we understand our impact by measuring and reporting, we will also begin to understand where we can achieve the most positive impact and at the same time reduce our negative impact.”