In a significant move towards a sustainable future, Habib Bank Limited (HBL) has officially become a signatory to the United Nations Principles for Responsible Banking (PRB). This commitment aligns HBL with a global framework for a sustainable banking industry, developed through collaboration between banks around the world and the United Nations Environment Programme Finance Initiative (UNEP FI).
As part of its dedication to the Principles for Responsible Banking, HBL has also chosen to join the Net-Zero Banking Alliance (NZBA), a UN-convened alliance comprising banks committed to aligning their lending and investment portfolios with net-zero emissions by 2050. This alliance also sets interim targets for 2030 or earlier, in line with the ambitious temperature goals outlined in the Paris Climate Agreement.
The UN Principles for Responsible Banking are at the forefront of sustainable banking practices globally. They guide banks to take actions that align their core strategies, decision-making processes, lending, and investments with the UN Sustainable Development Goals and international agreements like the Paris Climate Agreement. Signatory banks, under these principles, are encouraged to identify and measure the environmental and social impact of their business activities, set and execute impactful targets, and regularly report publicly on their progress.
The Net-Zero Banking Alliance acts as a climate accelerator within the Principles for Responsible Banking, bringing together over 130 members from more than 40 countries. These members represent approximately 41% of global banking assets, amounting to USD 74 trillion. The NZBA acknowledges the critical role banks play in transitioning the global economy to net-zero emissions and assists its members in establishing credible science-based net-zero targets that align with the goal of limiting global temperature rise to 1.5°C.
HBL’s decision to join this alliance reflects its commitment to leadership in the banking industry, emphasizing how banking products, services, and relationships can facilitate and expedite changes necessary to achieve mutual prosperity for both present and future generations. HBL aims to be a part of the collective efforts outlined by the NZBA to reach net-zero emissions by 2050, recognizing the pressing need to address climate change, nature loss, pollution, and social issues.
Muhammad Aurangzeb, President & CEO of HBL, stated, “We are promoting sustainable practices within the HBL community and across the financial services industry. HBL is following the path that has been defined by the AKDN Environment and Climate Change Commitment, envisaging a Net Zero goal by 2030.
Through our commitment as signatories to NZBA & PRB, we are setting a new standard for sustainable banking in Pakistan. UNEP FI’s expertise and resources are essential to achieving our ambitious goals, and we are confident that our partnership will help us accelerate the transition to a net zero economy and build a more sustainable future for all.” This initiative marks an ambitious journey towards addressing pressing global challenges and shaping a more sustainable future.
