On 31 March 2020, the United Nations Environment Programme Finance Initiative (UNEP FI) announced that a community of signatories to the Principles for Responsible Banking and UNEP FI member banks had developed a portfolio impact analysis tool for banks (the Tool) together with a guidance document.
The Tool guides banks through a holistic analysis of their retail (consumer and business banking) and wholesale (corporate and investment banking) portfolios. It enables banks to identify their most significant impact areas based on the nature, content and geographic scope of their portfolios, and to assess their current level of performance vis a vis these impact areas. It further enables them to consider their current level of performance vis a vis their most significant impact areas.
The guidance document provides more detailed explanations of the requirements for conducting an impact analysis, what data is required, and examples of the external stakeholders the bank could engage with.