The European finance sector has been ‘largely ineffectual’ in its
attempts to address its social and environmental responsibilities over
the past few years, according to a coalition of ten charities.
The Corporate Responsibility Coalition, which includes Amnesty
International, Christian Aid, WWF, The Corner House, and New Economics
Foundation, says voluntary initiatives in the sector such as the
Equator Principles, which provide a framework for considering ethical
factors when investing in large projects, ‘have failed to achieve
progress in the sector as a whole’.
In a new study, A Big Deal?, the coalition argues that financial
services companies are guilty of a number of sins, including an ‘abject
failure’ to factor in the financial risks of climate change, helping
companies ‘to siphon off much-needed tax revenues from cash-strapped
developing countries’ through tax havens, and failing to get to grips
with corruption.
They argue that only greater regulation from the European Union,
including the imposition of mandatory social reporting, will bring
improvements.
