Fair Finance Guide International Methodology 2018

The negative socio-environmental impacts of lending activities and the investment of financial institutions in unsustainable business practices have placed a special burden on the existence of human and natural sustainability (people and planets). Most of them are civil society organizations that care about this issue and demand financial institutions to be fully responsible for the problems.

One of the civil initiatives advocating sustainable financial society 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 from various civil society organizations (CSOs) in Belgium, Brazil, France, Germany, India (starting in 2018), Indonesia, Japan, Netherlands, Norway, Sweden and Thailand (starting in 2018). In Indonesia, this coalition is called the Responsiveness of Bank Indonesia, where Perkumpulan Prakarsa is the coordinator.

In each country, the coalition has a website that can be used by users of financial service products and other interested parties, to compare the financial and investment policies of each financial institution with various cross-sectoral issues and industries. In addition, the coalition also regularly publishes case studies on certain topics, trying to assess whether and how financial institutions apply sustainability criteria to their daily practices. Furthermore, the coalition also pressured banks, insurance companies and other financial institutions to improve their unsustainable policies and practices, and influence regulators to develop and implement adequate regulations.

Through a series of advocacies carried out, the Fair Finance Guide International is expected to stimulate financial institutions to rethink their role in society. As mentioned earlier, one way to do this is to do a bank rating using a series of standards or methodologies that can be accounted for.

This document presents the methodology used by the Fair Finance Guide International to assess the policies of financial institutions. Through the collective expertise and experience of all coalition members involved in the Fair Finance Guide International network, this methodology is based on international insights and standards updates on environmental issues, sustainability and human rights. The Fair Finance Guide International believes that this document will help the coalition of civil society organizations in each country to start the road and safeguard fair and sustainable financial practices throughout the world.

Download and read the full document at the following link.

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