Since the financial crisis, financial institutions, and in particular, systemically important banks, have been under escalating pressure to take greater responsibility for their impact on society and to influence the behaviors of their clients. That pressure has grown significantly in recent years. Like other large companies, large financial institutions are being asked to define a corporate purpose that goes beyond simply maximizing shareholder value; they are being asked to apply environmental, social and governance (ESG) objectives not only to their own businesses but also to influence their customers through their financing activities. Some governments also increasingly view financial institutions as “transmission mechanisms” for implementing important policy objectives.

Collaborative Governance in Banking, a project in collaboration with Tapestry Networks, explored how expectations for banks’ roles in addressing challenging environmental, social, and economic issues are evolving and sought to identify practices for improving governance and policy in response.

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Responding to societal challenges: a framework for bank boards and their directors (2023)

As shifts in public sentiment regarding expectations for corporations and financial institutions in addressing social issues continue to challenge corporate governance, the leaders of the largest banks now face decisions about how to respond to a range of societal concerns. This report, based on interviews and advisory board meetings with bank directors, executives and other stakeholders, synthesizes the views of these participants and provides a framework for how bank boards can effectively make decisions about their institutions’ responses to societal challenges.

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CGIB: The role of global banks in collaborative governance (May 2022)

In May 2022, a select group of bank directors met virtually to gather perspectives on changing expectations for financial institutions, the need for effective collaboration between banks and their stakeholders, including investors and between the public and private sectors, and the practical implications for governance structures and processes. This document synthesizes views gathered from initial discussions with bank directors, investors, and other stakeholders and provides background and context for the conversation.

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