The Portfolio Impact Analysis Tool for Banks represents a great step forward for holistic impact analysis in banking. The Tool is designed to guide banks through an impact analysis of their portfolios. Developed jointly by the Positive Impact Initiative with signatories of the Principles for Responsible Banking and UNEP FI Member Banks, the Tool will help banks analyse the impacts associated with their consumer, business, corporate, and investment banking portfolios. The analysis will enable banks to set targets where it matters in order to drive their contribution to society’s goals, as required by the Principles for Responsible Banking.

The Tool enables banks to identify their most significant impact areas based on the nature, content, and geographic scope of their portfolios, and to assess their current level of performance vis a vis these impact areas. It further enables them to consider their current level of performance vis a vis a their most significant impact areas. The impact areas considered in the tool are those listed and described in the Impact Radar (Positive Impact Initiative, UNEP FI, 2018).

The purpose of such an analysis is for banks to set meaningful targets to increase their positive impacts and decrease their negative impacts. Meeting such targets is likely to require a combination of:

• Client engagements – i.e. promoting transitions and innovations within clients
• Portfolio adjustments – i.e. reducing and/or phasing out certain activities, or scaling up certain activities

The Tool is open-source. It is a priority for UNEP FI to ensure transparency and replicability. All technical specifications are provided inside the Tool.