The Global Alliance for Banking on Values (GABV) was founded in 2009 as an independent network for banks using nance to deliver sustainable development for unserved people, communities and the environment. In 2010 the organization set a goal of touching one billion lives with sustainable banking by 2020. Presently there are 13 GABV members with a combined asset base in excess of USD 26 billion and over 7 million clients. The GABV is in the process of expanding its membership with a goal of 50 to 100 members by 2020.
The project will: Test the hypothesis that a fund to provide Tier1 and Tier 2 capital would - Enable banks with business models consistent with GABV values (Values Based Banks) to expand their ability to reach clients addressing economic and social development in an environmentally sustainable manner, - Maintain and expand the mission and impact of these Value Based Banks, and - Demonstrate that these benefits would not otherwise be achieved without additional capital; Establish clear criteria and a measurement framework for potential investees (Values Based Banks) relative to - Current economic, social and/or environmental impact, and - Future economic, social and/or environmental impact of the expansion resulting from increased Tier 1 and/or Tier 2 capital; Communicate the results of research on the hypothesis and measurement framework to the general public supporting broad educational efforts regarding the ability of Values Based Banks to positively impact economic and social development in an environmentally sustainable manner.
Conduct market research to quantify how much additional Tier 1 and/or Tier 2 capital can be productively used by Values Based Banks, for the benefit of their clients, if a fund were to launch, Conduct market research to establish the criteria for the specific types of Values Based Banks that will have access to the fund, Conduct market research to determine the nature and number of investors who will provide capital through the fund, Conduct market, legal and regulatory research to determine the nature and structure of an investment fund focused on providing Tier 1 and/or Tier 2 capital to Values Based Banks, Conduct market research on how to quantify and report on the economic, social and/or environmental benets to clients resulting from better access to capital for Values Based Banks to - Determine the impact metrics to be tracked by banks that access the fund, - Determine the mechanism and its implementation plan by which such impact metrics will be tracked and reported by the banks and/or their clients, Publish the findings from the research described above and work with a charitable organization to disseminate these findings (likely to include the convening of a broad-based stakeholder workshop among other means).
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The value for Financial Institutions (FIs) of working with GABV includes:
1 Participation in financial capital raising that seeks to raise significant capital for investment in FIs with a sustainable development finance focus from capital sources that are willing to provide long term capital in return for a combination of financial and social returns. 2 Participation in implementation of standardized impact metrics that seek to advance the industrywide discussion regarding the development of clear and transparent criteria and tools for measuring FIs social and environmental impact. 3 Participation in human capital development that seeks to provide support for the training and development of bankers and managers in sustainable development banking practices as well as building a network for knowledge sharing across members providing the benefits of scale and diversity to FIs that tend to be of limited size and regionally focused. 4 Participation in a network of Values Based Banking CEOs that has developed within the GABV providing for peer-to-peer discussions on the challenges they face with open sharing of potential approaches to resolving these challenges.
The value for investors, that are providers of financial capital, of working with GABV includes:
1 Participation in financial capital raising that seeks to raise significant capital for investment in FIs with a Value Based Banking focus. The growth in demand for Values Based Banking requires a scaling of individual efforts beyond earnings retention to support current and new activities as well as meet increased regulatory capital requirements. 2 Participation in implementation of standardized impact metrics that seeks to advance the industry-wide discussion regarding the development of criteria and tools for measuring FIs social and environmental impact. This effort will provide an opportunity for current and future investors to review the impact of Values Based Banks thereby supporting the non-financial evaluation of investments. 3 Participation in the ongoing thought leadership on sustainable banking issues that seeks to engage key stakeholders in proving the importance and impact of sustainable banking practices that deliver a triple bottom line for People, Planet, and Profit.
Contact Information
For further information, please contact the GABV secretariat. Email david.korslund@gabv.org or call +31 (0) 6 3427 6907, or email james.niven@gabv.org or call +31 (0)30 694 2421.
D I S C L A I M E R This document does not constitute an offering of securities of any kind and is intended to convey only basic background information. Nothing herein may be construed as a representation or warranty by ShoreBank International Ltd. The information contained herein may not be interpreted as binding or guaranteed with respect to the past, present or future. Financial information and other data contained in this document are based on subjective analyses and have not been independently verified.
www.gabv.org
Funded by The Rockefeller Foundation, Triodos Foundation, BRAC and BRAC Bank, and Vancity.