ISO 32210:2022 Sustainable finance — Guidance on the application of sustainability principles for organizations in the financial sector provides guidance to organizations on the application of overarching sustainability principles, practices and terminology for financing activities. It addresses matters of relevance from the perspective of an organization and its stakeholders.
The standard is applicable to all organizations active in the financial sector, including, but not limited to:
- direct lenders and investors;
- asset managers;
- service providers.
Beyond financial institutions and intermediaries, this document can be used by other parties in the financial sector such as:
- providers or recipients of sustainable finance;
- governmental organizations;
- public and private sector institutions;
- business entities;
- industry associations;
- financial market regulators;
- supervisory and control bodies.
Table of Contents
| Introduction |
| 1 Scope |
| 2 Normative references |
| 3 Terms and definitions |
| 4 Sustainable finance principles |
| 4.1 General |
| 4.2 Governance and culture |
| 4.3 Strategy alignment and objectives |
| 4.4 Risk and opportunity management and impact assessment |
| 4.5 Stakeholder engagement |
| 4.6 Monitoring, measuring and metrics |
| 4.7 Reporting, transparency and assurance |
| 4.8 Continual improvement and enhancing ambition |
| 5 Implementation of sustainable finance |
| 5.1 General |
| 5.2 Governance and culture |
| 5.3 Strategy alignment and objectives |
| 5.4 Risk and opportunity management and impact assessment |
| 5.5 Stakeholder engagement |
| 5.6 Monitoring, measuring and metrics |
| 5.7 Reporting, transparency and assurance |
| 5.8 Continual improvement and enhancing ambition |
Applying ISO 32210
The main steps in applying sustainability principles in conformity with ISO 32210 are as follows.
Understanding the context
Identify the organization’s internal and external context, including its stakeholders, environmental impacts, and sustainability risks and opportunities. This involves conducting a thorough analysis of the organization’s activities and their potential impacts on sustainability.
Defining sustainability objectives
Establish clear and measurable sustainability objectives based on the analysis of the organization’s context. These objectives should align with the organization’s overall mission and values, as well as the broader sustainability goals outlined in ISO 32210.
Developing a sustainability policy
Create a comprehensive sustainability policy that outlines the organization’s commitment to sustainable practices and its approach to addressing sustainability challenges. This policy should be communicated to all relevant stakeholders and integrated into the organization’s overall management system.
Identifying key performance indicators (KPIs)
Define KPIs to monitor and measure the organization’s progress towards achieving its sustainability objectives. These KPIs should be aligned with the principles and criteria outlined in ISO 32210 and should help track the organization’s environmental, social, and economic performance.
Implementing sustainable practices
Put in place specific actions and initiatives to implement sustainable practices within the organization. This may include adopting green technologies, reducing energy and resource consumption, promoting diversity and inclusion, engaging with local communities, and integrating sustainability considerations into investment and lending decisions.
Monitoring and measuring progress
- Regularly monitor and measure the organization’s sustainability performance using the defined KPIs. This involves collecting relevant data, analyzing it, and reporting the results.
- The organization should also conduct periodic audits and reviews to ensure compliance with ISO 32210 and identify areas for improvement.
Continual improvement
- Actively seek opportunities for continual improvement in sustainability performance. This involves regularly reviewing and updating the sustainability objectives, policy, and practices based on the organization’s changing context and new sustainability challenges.
- Engage with stakeholders and learn from best practices and industry benchmarks to drive ongoing improvement.
In conclusion…
By following these steps, organizations in the financial sector can align their operations with sustainability principles outlined in ISO 32210 and contribute to a more sustainable and resilient financial system.
ISO 32210 can be purchased from the ISO.org website.
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