This paper seeks to assess how the international banking community is building sustainability into corporate strategies; how effectively these strategies are being implemented; how sustainability is being embedded into key business processes and decisions; and how sustainability principles are reflected in reporting. It presents an assessment of the sustainability performance of banks using a range of frequently used indicators, while also scrutinizing the indicators by examining the extent to which they effectively measure the performance and commitments of banks. While many banks achieve high scores on these indicators, there is evidence that there are significant flaws which are not adequately addressed.
Why are boards standing by and watching as the companies they govern take our environment to hell in a handbasket? The banks are a case in point, as researcher Martijn Boersma from Catalyst Australia, recently wrote: “While banks frequently mention risk assessments, they nevertheless continue to finance unsustainable activities.” Since 2008, banks collectively have invested tens of billions into the carbon-rich fossil fuel sector, but do not include these details in their CSR reports.
Modern supply chains are long, complex and global, making it harder for businesses to know who they’re really dealing with, and for consumers to feel confident they’re buying ethically. The negative consequences of that complexity can be as devastating as the deadly Rana Plaza collapse in Bangladesh in 2013, which galvanised public opinion about the conditions under which our clothing is produced. Revelations about Australia’s food industry in a recent ABC Four Corners report show there are issues to be addressed at home too. So, the conversation has turned to the need to build responsible supply networks and the challenges in doing that. That’s the focus of the Sustainable Supply Network Initiative at UTS Business School and this #think public lecture.
The GFC has shown that unsustainable banking activities can bring the economic system to the brink of collapse. A new report by Catalyst Australia examines to what degree banks can also cause or alternatively mitigate social and environmental harm, and what are the resulting responsibilities towards the community and the environment?
Australian companies will soon be publishing financial results, as well as information about sustainability efforts. Corporate social responsibility of the big four banks – Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and Westpac is a continuing topic of debate following recent scandals and reports of unsustainable activities. Yet according to ANZ chairman, David Gonski, Australians ought to “stop bashing the banks” for being large and profitable. This comment should put civil society on guard.
Australian fashion companies lack transparency around their supply chain or do not have full knowledge of where their raw materials are being sourced from, leaving workers including children at risk of exploitation, an audit has found.