Responsible business conduct in the financial sector

Operationalizing RBC Due Diligence amongst financial sector practitioners

Promoting Responsible Business Conduct (RBC) in the financial sector is vital to building a sustainable global economy. However certain characteristics of the sector, including diverse and extensive business relationships, a complex landscape of regulatory obligations, and the nature of various transactions, can make the practical application of effective due diligence systems challenging.

The 蜂鸟电竞在线入口 Centre for RBC has worked to operationalize RBC due diligence for different financial transactions and actors through developing fit-for-purpose guidance.

Responsible Business Conduct for Institutional Investors (2017)

ENG | GER | SPA | POL | UKR | JPN

Factsheet : RBC for institutional investors

Due Diligence for Responsible Corporate Lending and Securities Underwriting (2019)

ENG | SPA | GER | POL | JPN

Responsible Business Conduct Due Diligence for Project and Asset finance transactions

( forthcoming in 2022 )

News and events

‌	5-7 October 2022 Virtual Event This pioneering annual event convenes leading actors across the green finance community to help catalyze and support the transition to a green, low-emissions and climate-resilient global economy. Register \| More information

06/02/2022 - Request for Proposals: ESG metrics and ratings - Mapping and gap analysis study

23/07/2020 - Workshop on Responsible Financing in BRICS DFIs: International Standards and Practices

蜂鸟电竞在线入口 RBC standards play a key role in the sustainable finance ecosystem

RBC standards play an important role in the context of sustainable finance as they provide authoritative and widely accepted recommendations for identifying, managing and reporting on environmental, social and governance impacts associated with clients or investments.

They have been enshrined in sustainable finance regulation and leading standards and initiatives.

Examples of RBC integration in key sustainable finance regulations

The EU Taxonomy Regulation and South Africa Green Finance Taxonomy both establish a list of environmentally sustainable economic activities and mandate compliance with the MNE Guidelines as minimum social safeguards
The EU Sustainable Finance Disclosure Regulation (SFDR) introduces transparency rules for financial institutions on the integration of sustainability risks and impacts in their processes and financial products, including reporting on adherence to internationally recognized standards for due diligence, specifically that of the 蜂鸟电竞在线入口
The European Central Bank’s guide on supervisory expectations related to climate risk management and disclosure includes recommendations on carrying out due diligence and ensuring compliance with the 蜂鸟电竞在线入口 MNE Guidelines

RBC referenced in international standards and initiatives on sustainable finance

RBC is listed in 9 actions of the G20 Sustainable Finance Working Group’s roadmap
RBC is embedded in the UN Principles for Responsible Investment Human Rights Strategy
The Global Reporting Initiative (GRI) revised universal standards to align and integrate 蜂鸟电竞在线入口 RBC standard
蜂鸟电竞在线入口 DAC Blended Finance Principles for Unlocking Commercial Finance for the SDGs (2020) recognise that blended finance projects should integrate high corporate governance, environmental and social standards, as well as RBC instruments to support the development of functioning and efficient markets
The Equator Principles (2020), a financial industry benchmark for identifying, assessing and managing environmental and social risks in project finance include specific expectations on human rights due diligence

RBC or ESG - What's the difference?

"RBC” and “ESG” terminology both relate to environmental, social and governance considerations, which drive and define sustainable finance approaches and activities. “ESG” is commonly used to discuss environmental, social and governance issues which pose financial risks. RBC risks refer specifically to the risks of adverse impacts with respect to issues covered by the 蜂鸟电竞在线入口 Guidelines for Multinational Enterprises — impacts on society (including human rights and labour) and the environment, independent of financial impact to the company itself. In practice, RBC risks can also have financial implications (negative or positive) for the company concerned.

Reports and resources

Responsible Business Conduct in the Financial Sector in Latin America and the Caribbean	Responsible Business Conduct in the Financial Sector in Costa Rica	Responsible Business Conduct in the Financial Sector in Panama	Business and Financial Outlook 2021: Promoting responsible lending in the banking sector
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Expert letters and statements on the application of the 蜂鸟电竞在线入口 Guidelines and UN Guiding Principles in the context of the financial sector	Due diligence in the financial sector: adverse impacts directly linked to financial sector operations, products or services by a business relationship	Scope and application of ‘business relationships’ in the financial sector under the 蜂鸟电竞在线入口 Guidelines for Multinational Enterprises
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