When you think of sustainability, it is unlikely that your first thought is banks.
However, banks have the potential to play a significant role in promoting sustainability through their lending, investment, and governance practices.
Notably, they also have the opportunity to funnel financing towards – or away from – organisations. Some of the banks in this list have restrictions on their lending to companies in the oil and gas industry, projects heavily involving fossil fuels or those who have high emissions or lacklustre sustainability commitments.
They can also finance sustainable projects and companies including those in renewable energy, sustainable infrastructure and humanitarian endeavours.
Some banks offer investment products that focus on sustainable businesses and practices such as green bonds, sustainable mutual funds, or socially responsible investment (SRI) portfolios.
Like the rest of us, banks aren’t immune to environmental and social risks, and are increasingly involving elements of ESG and climate risk into decision making, both internally and in lending.
Be it consumer-driven, morally informed or embedded into the company ethos since day one, we’ve compiled a list of the top banks driving sustainability in the finance sector.
10. Nykredit
CEO: Michael Rasmussen
Headquarters: Copenhagen, Denmark
Founded in 1851 and based in Copenhagen, Nykredit is a customer-owned bank and Denmark’s biggest lender with 35% market share. With ESG at the heart of its operations, this means engaging with all areas of Denmark, not just the cities, and Nykredit has made a special commitment to offer financial solutions in urban and rural districts alike at all times.
On the environmental side, Nykredit was the first Danish systemically important financial institution (SIFI) to join the Science Based Targets initiative (SBTi), and announced tighter restrictions on financing gas and oil companies in 2023.
“As a society we share a common task: to make Denmark greener,” says Michael Rasmussen.
“And as the largest lender in Denmark, we acknowledge our responsibility for driving this change.”
9. UOB
CEO: Wee Ee Cheong
Headquarters: Singapore
United Overseas Bank, known as UOB, is driven by three key pillars:
- Personalisation – using data to create individually tailored solutions
- Connectivity – connecting businesses to new opportunities in ASEAN through its one-bank approach
- Sustainability – contributing to the growth of the region's social, economic and environmental sectors.
“It is our responsibility to build a sustainable future for generations to come,” says Wee Ee Cheong.
“At UOB, we want to create meaningful value and positive impact for the people around us, by working with our colleagues, customers and other stakeholders. I believe that we can, and we will, catalyse and enable change.”
8. SpareBank 1
CEO: Benedicte Schilbred Fasmer
Headquarters: Oslo, Norway
A collection of Norwegian banks, SpareBank 1 prides itself on its strong local ties. The alliance is built on the foundation of being local, committed and responsible social actors, and ranks its social responsibility under three main categories:
- Equality and diversity
- Requirements for suppliers
- Community initiatives
“Climate change is increasingly affecting our world and making our future uncertain,” says Benedicte.
“This is one of the greatest challenges of our time for humanity and not least for nature as we know it. It cannot be solved by individual actors, countries or institutions, we must find solutions globally and collectively.”
7. Banco Pichincha
CEO: Juan Sarumeño
Headquarters: Quito, Ecuador
South American company Banco Pichincha not only serves six countries in Latin America, but also works to preserve the country's heritage and promote art and culture.
As part of the company’s embedded sustainable practices, it includes ESG criteria in the development of financial products and services, prioritises transparency on sustainable performance and supports sustainable services and businesses.
6. The City Bank Limited
CEO: Mashrur Arefin
Headquarters: Dhaka, Bangladesh
Founded in 1983, City Bank serves more than 1.7 million customers. Governance and compliance is at the heart of City Bank’s sustainability strategy, as it works to reduce risk for itself and its stakeholders.
In 2022, City Bank joined the UN’s Net-Zero Banking Alliance (NZBA) and has since been recognised for its sustainability by Bangladesh Bank, German Agency for International Cooperation (GIZ) and Global Finance for its sustainability.
In the same year, City Bank’s sustainable finance disbursement reached 19.30% of total loan disbursement, with green finance at 5.90% of total term loan disbursement.
5. TSKB
CEO: Murat Bilgiç
Headquarters: Istanbul, Turkey
Investment banking specialist Turkiye Sinai Kalkinma Bankasi (TSKB), or Turkey Industrial Development Bank, uses a sustainable banking model to provide a qualified contribution to climate and environmentally friendly investments, equal opportunities in employment and inclusive economic growth.
As part of its corporate social responsibility, it works to increase the amount of women in finance, boost education and educate about the environment.
“As a bank committed to the principles of Sustainable Development Goals, gender equality holds a prominent position on our agenda,” says Meral Murathan, Executive Vice President and Sustainability Leader at TSKB.
“We believe that gender equality is crucial for accelerating sustainable development and fostering inclusive economic growth.”
4. Amalgamated Bank
CEO: Priscilla Sims Brown
Headquarters: New York, US
Self-defined as ‘the bank for change-makers’, Amalgamated Bank is committed to environmental and social responsibility and uses its funds to support sustainable organisations, progressive causes and social responsibility.
Net-zero, powered by renewable energy and a certified B Corp, Amalgamated Bank ticks all the key sustainability boxes. It has pledged not to lend to fossil fuel companies and 32% of its loan portfolio goes to climate solutions.
It also offers incentives to its users – including special lines of credit for homeowners to install solar panels.
“Our climate work is technical and strategic, but it also honours the heritage of those who work for the future,” explains Ivan Frishberg, Chief Sustainability Officer.
“We are excited to embark on this work, engage with clients to realise our goals, and communicate our progress to our valued stakeholders.”
3. Triodos Bank
CEO: Jeroen Rijpkema
Headquarters: Zeist, The Netherlands
Transparency in investment is key for European bank Triodos. It prides itself on publishing details of every organisation it finances on its website, so customers can see how their money is delivering positive change for people and the planet.
In 2023, its €23.2bn (US$25.2bn) in assets were used to create social, environmental and cultural value in a transparent and sustainable way.
“Most businesses aren’t thinking of children as customers or stakeholders,” says Sjoerd Rozing, fund manager of the Triodos Future Generations Fund.
“They focus on making their quarterly results, not thinking about them as future customers, as future employees so that's a problem.
"We need companies that really need to embrace long-termism, and to work with them to understand why it’s important. Children have no voting rights, so we need to help them."
2. ProCredit Holding
Chairman of the Management Board: Hubert Spechtenhauser
Headquarters: Frankfurt, Germany
ProCredit Holding is part of ProCredit, an international group of development-oriented commercial banks dedicated to its ethical corporate mission. Aiming to drive forward the creation of transparent, inclusive financial sectors in developing countries and transition economies, ProCredit supports SMEs and has a strong focus on human ethics. As of 2022, 30% of the Bank’s loan portfolio became green loans.
"Responsible banking that contributes to the well-being of our customers, the communities and the environment is at the heart of our approach,” Kameliya Mineva, member of the Management Board and Executive Director of ProCredit Bank Bulgaria.
“We recognise that sustainability is not just a choice, but an obligation for the world we share."
1. Vancity
CEO: Wellington Holbrook
Headquarters: Vancouver, Canada
Founded in 1946, Vancity is a Canadian financial co-operative that uses financial tools to stimulate social and environmental progress. Having achieved carbon neutrality in 2008, a first for a North American-based financial institution, it is now working towards net zero by 2040 – a slight sooner than many others. In 1961, it was the first financial institution to provide mortgages to women without a male co-signer.
Now, Vancity’s profit programme Shared Success dictates that 30% of the bank’s profits go back to members and to initiatives that create long-term gains in things like climate change, reconciliation and financial literacy. Since 1994, more than CA$440m (US$321m) has been allocated to members and communities through the program, including a record CA$54m (US$39.4m) allocation during the last two years.
“At Vancity we want to support our members on the journey to net-zero and a low-carbon future,” says Andrea Harris, Vice President Impact Strategy, Vancity.
“The financial industry has the power and responsibility to actively contribute to climate change solutions. Our members and the enviroFund™ Program are an important contribution to this collective effort."
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