Fair Finance Guide launched in Sweden
Diakonia is one of five organizations behind the Fair Finance Guide, which was launched in Sweden on January 21st 2015. In its first mapping it is clear that the seven largest banks in Sweden have weak sustainability and social responsibility policy guidelines for their investments.
Swedish banks score poorly on sustainability
The seven largest banks in Sweden have weak sustainability and social responsibility policyguidelines for their investments, an extensive first assessment conducted by the Swedish Fair Finance Guide coalition has concluded.
Web site where clients can check their bank
The banks’ scores are published on Fair Finance Guide Sweden’s interactive website. Bank clients can now easily check their banks on different sustainability issues and communicate their satisfaction or dissatisfaction with those policies, with the option of switching to a more responsible bank.
“For a long time it has been difficult for consumers to get an independent and comparable view of how their banks really act on these issues. With the Fair Finance Guide they get a better insight, can make more informed choices and request changes”, says Jakob König, project leader at the Swedish Consumers’ Association.
International initiative from civil society
The Fair Finance Guide is an international civil society initiative that aims to focus public attention on the policies of banks, with the aim of instigating a race to the top among banks to achieve better sustainability, social, and human rights standards.
In addition to Sweden, the Fair Finance Guide is currently active in six other countries: Belgium, Brazil, France, Indonesia, the Netherlands and Japan.
Banks need to improve
“Swedish bank policies are far from providing clear sustainability requirements for their investments. There is a great deal of improvement needed. Bank customers expect and demand this. Some banks are better than others but, in general, no bank scores highly”, says Jakob König.
The Swedish banks commit to only 22 per cent of Fair Finance Guide’s list of widely accepted international standards and conventions. This implies that they lack many of the most important principles when investing.
The assessed banks receive the lowest scores in the themes of biodiversity, climate change, and energy. They score highest on human rights but the average score in this area still does not reach 50 per cent of the principles.
“Our study shows that if bank policies are weak and do not provide clear guidelines, this could lead to investing in companies and projects around the world which run counter to international targets for climate change or are associated with violations of human rights”, warns Jakob König.
An updated assessment is scheduled for the fall of 2015.
“By then, we hope that banks would have made many improvements in their policies”, says Jakob König.