Apart from the public debate on drivers & compensation, on "right-sizing and -scoping", there is an other priority: how can banks contribute to the global agenda on public goods (and bads). Also, who wants to own in 2012 a "brown bank", as we are moving to a "green and just economy", with proper consideration for natural and social capitals.
Banks must develop minimum standards and policies for Environmental, Social, Ethical, Governance (ESEG) issues in their core decision processes on lending, investing, trading and advisory (client-first!) practices, with full public disclosure on standards and performance. They may build on the Equator Principles (EP), the Principles for Responsible Investment (PRI) and also on the OECD Guidelines for multinational enterprises, the Ruggie-Framework for Human Rights, Global Compact, Earth Charter International. Such standards must be included in training, management development programs and personal targets/KPIs (15%). Public verification of performance must take place by an external assurance statement. Such ESEG factors should be explicitly included in KYC due diligence evaluation on business clients. ESEG issues must be key issue for consideration in Boards. The composition of such Boards should also reflect the importance of ESEG for long term strategy. A separate external multi-stakeholder Advisory Council (incl. clients, civil society organisations, etc) should be instituted. Creating a separate Foundation to support initiatives by employees and civil society organisations to foster environmental sustainability and social justice.
See for more SPECIFIC RECOMMENDATIONS on this subject: WWW.WORLDCONNECTORS.NL