This comprehensive addition to the debate on sustainable development has been produced in order to take a global pulse on how the financial services sector is responding to the growing challenge of shareholder and stakeholder expectations on social and environmental performance. In the opinion of many commentators in this new book, given the intermediary role banks play within economies, their potential contribution toward sustainable development is enormous. Indeed, for banks, the conclusion that corporate sustainability has become an investable concept that increases long-term shareholder value is becoming difficult to deny.To date, banks have been relatively slow to examine their exposure to risk (the environmental and social performance of their clients) and the business opportunities of sustainable development (the products and services they offer). Not before time, Sustainable Banking concludes that this is beginning to change, with both risk and opportunity becoming established elements in banking policies towards environmental sustainability. In addition, banks have now begun to take notice of and address their own environmental performance. Through the use of case studies and detailed analysis, the book examines the environmental policies of banks, the importance of transparency and communication with their stakeholders, environmental and ethical investment funds, current practice by the providers of financial services with regard to environmental risk management and, finally, the key role of government, NGOs and multilateral banks in delivering sustainability.Sustainable banking has not, however, been achieved and nor will it be in the immediate future. As globalisation proceeds apace, Sustainable Banking argues that improvements are necessary in banks' attitudes toward transparency and accountability with regard to their lending policies. In addition, in order to promote best practice, the leading banks need to start measuring their customers' environmental performance in order to persuade polluting clients that minimum compliance to regulations will no longer suffice. The book finds many shining examples in the co-operative, mutual and social sectors for the big players to emulate. Environmental and ethical considerations in such loan portfolios have proven to be profitable and "best-in-class" larger banks are now also reaping benefits.The unprecedented scope of the book has attracted contributors from four continents including Deloitte & Touche, Rabobank, The World Bank, The European Bank for Reconstruction and Development, The United Nations Environment Programme, The World Business Council for Sustainable Development, UBS, Henderson Investors, KPMG, The World Resources Institute and SAM Sustainability.

chapter |5 pages


part 1|108 pages

The Environmental Policies of Banks

chapter 5|16 pages

Assessing the Sustainability of Bank Service Channels

The case of The Co-operative Bank

chapter 6|8 pages

Grameen Shakti

Financing renewable energy in Bangladesh

chapter 7|18 pages

Assessing the ‘Triple Bottom Line’

Social and environmental practices in the European banking sector

chapter 8|6 pages

Sustainable Banking in Austria

part 2|54 pages

Transparency and Communication

chapter 11|17 pages

Reporting on the Environment

Current practice in the financial services sector

chapter 12|7 pages

Making the Link between Environmental Performance and Shareholder Value

The metrics of eco-efficiency

chapter 14|14 pages

The Corporate Environmental Performance–Financial Performance Link

Implications for ethical investments

part 3|44 pages

Sustainable Investment Funds

chapter 15|8 pages

Sustainable Development Funds

Progress since the 1970s

chapter 16|11 pages

The Transition from Environmental Funds to Sustainable Investment

The practical application of sustainability criteria in investment products

chapter 17|12 pages

The Dow Jones Sustainability Group Index

The first worldwide sustainability index

part 4|67 pages

Environmental Risk and Banks’ Products

chapter 22|5 pages

The Environment Handbook

A Danish tool for including environmental aspects in credit evaluation

part 5|122 pages

The Role of Government, NGOs and Multilateral Banks

chapter 24|32 pages

The World Bank’s Environmental Assessment Policies

Review of institutional development*

chapter 27|7 pages

The Growth and Environment Scheme

The EU, the financial sector and small and medium-sized enterprises as partners in promoting sustainability

chapter 28|11 pages

An Environmental Fund with the WWF Label

The importance of appropriate communication tools

chapter 30|11 pages

Directing Investment to Cleaner Energy Technologies

The role of financial institutions

chapter 31|19 pages

Sustainable Finance for Sustainable Energy

The role of financial intermediaries