There is an urgent need to accelerate the transition towards a more sustainable global economy, to meet climate change goals, and align activities with sustainable development targets. Meeting these goals will not be achieved without profound changes for the financial sector. This unprecedented change presents a new era of risk and opportunity for organizations.
What does ISO 32210 do?
ISO 32210 Sustainable finance - Guidance on the application of sustainability principles for organizations in the financial sector, published in October 2022, sets out principles and practices to support financial organizations to enable positive environmental and social outcomes, risk mitigation and deliver sustainable value. The standard aims to support organizations to:
- Transition activities toward contributing to long-term sustainability goals,
- Drive value in realizing new investment opportunities presented by the global transition,
- Enhance both sustainability performance and long-term commercial returns from investment portfolios,
- Identify and mitigate risk,
- Align interest with stakeholders’ expectations.
ISO 32210 Sustainable finance — Guidance on the application of sustainability principles for organizations in the financial sector has been designed for organizations to use regardless of their level of expertise or capacity. Organizations can begin by addressing key elements of the principles starting with “Governance and culture” and “Strategy alignment and objectives” initially, and then working through the other Principles concentrically inwards, noting the periodic key reporting and output under “Reporting and transparency”.
Using the concept of Continual Performance Improvement and Enhancing Ambition organizations can then use the standard to improve sustainability performance and outcomes. Internal operational performance as well as all activities, products and services should be considered by the organization.
Who does it apply to?
ISO 32210 Sustainable finance — Guidance on the application of sustainability principles for organizations in the financial sector has been designed to be globally applicable. Organizations at different stages of integration of sustainability can apply all or parts of the principles and guidance, depending on existing components and degree of operational capability and capacity.
The principles and guidance can also be applied at the asset, project and service level across a range of markets, and instruments including within debt, equity, risk transfer, blended products and other financial services.
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ISO 32210 is available for sale from the ISO store or from your national member body.