Sustainability, and especially Ethics, are not the first words that come to one’s mind when thinking about the Banking Industry. Although banking activities are largely based on trust, banks do not benefit from a positive image. Scandals of money laundering, links to cartels, and terrorist organisations have generated quite a lot of bad publicity for the sector.
In recent times, sustainability has gained a lot of attention and momentum in the banking sector, especially after the financial crises of 2008-09. The United Nations has recently launched a new framework for driving sustainability in the banking system: Principles for Responsible Banking. The objective is to help the industry to demonstrate how it can make a positive contribution to society.
Do global guidelines sincerely increase banks’ positive impact on the society? Are they just a way to polish their image? Is it banks’ role to steer other businesses, via their financing decisions, toward more responsible activities? How can banks stop money laundering?
In this episode, Emilia Vähämaa, Associate Professor in Finance at Hanken is discussing these very questions with Nebojsa Dimic, Assistant Professor at the University of Vaasa and Mika Leskinen, Chief Investment Officer and Head of ESG at FIM.
Will the banks play an increasing role in steering the sustainable changes that the world needs? As we say “the one who has the money can set the rules”, so hopes are high! But can we trust the banks in changing the world for the better?