Fair Finance Guide International Methodology 2018

The negative socio-environmental impacts of financial institution lending and investment activities on unsustainable business practices have created a separate burden for the existence of sustainable humans and nature (people and planet). Most of them are civil society organizations concerned with this issue and demand that financial institutions take full responsibility for the problem.

One of the civil society initiatives that advocates for sustainable financial and banking practices is the Fair Finance Guide International which was launched in January 2014. The Fair Finance Guide International is a collaborative coalition effort of various civil society organizations (CSOs) in Belgium, Brazil, France, Germany, India (starting from 2018), Indonesia, Japan, the Netherlands, Norway, Sweden and Thailand (starting from 2018). In Indonesia, this coalition is called Bank Indonesia Responsiveness, where Association Prakarsa be the coordinator.

In each country, this coalition has a website that can be used by users of financial services products and interested parties, to compare the financial and investment policies of each financial institution with various cross-sectoral and industry issues. In addition, the coalition regularly publishes case studies on specific topics, which attempt to assess whether and how financial institutions apply sustainability criteria in their daily practices. In addition, the coalition is also pressuring banks, insurance companies and other financial institutions to improve unsustainable policies and practices, as well as influencing regulators to develop and implement adequate regulations.

Through a series of advocacy efforts, Fair Finance Guide International is expected to stimulate financial institutions to rethink their role in society. As previously mentioned, one way to do this is to rank banks using a series of standards or methodologies that can be accounted for.

This document presents the methodology used by Fair Finance Guide International to assess the policies of financial institutions. Drawing on the collective expertise and experience of all coalition members involved in the Fair Finance Guide International network, the methodology is based on updated international insights and standards on environmental, sustainability and human rights issues. Fair Finance Guide International believes that this document will help a coalition of civil society organizations in every country to start the path and maintain fair and sustainable financial practices around the world.

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