One-armed bankers?

13 oktober 2008

Currently the content of my blogs is tilting somewhat towards financial institutions. I believe the developments in the international financial sector justify this choice.
In a blog in March, I described what I called “the expectation paradox” of the financial sector. My point was that banks would face increasing difficulties in being a “driver for change” for sustainability, while their irresponsible behaviour became more evident. I quoted Martin Wolf of the Financial Times who said the financial sector: “no industry has a comparable talent for privatising gains and socialising losses.”
So where are we now? Disaster has hit the industry. The impact of irresponsible behaviour is expecting to generate considerable fall out. How will this impact sustainability? Bjorn Stigson, President of the World Business Council for Sustainable Development, once stated: “If financial institutions don’t understand and reward sustainable behaviour, progress in developing more sustainable business practices will be slow”.
Given the other focus of the finacncial sector there is a risk that the prospects for sustainable business will be affected. Not only for this reason, but also for the future of the financial sector, this seems to be the right moment for financial institutions to recalibrate their compasses. What are we all about? How do we give meaning to our values? How do we balance people, planet and profit? How do we avoid that the financing of sustainable projects will be harmed? In sum: how will we give meaning to our role as “driver for change”. Because one way or another; this is where the future of the financial sector will be.

US president Harry S. Truman once famously said “Give me a one-armed economist!” He preferred clear recommendations and grew tired of economists who gave a good recommendation, and then began, "O n the other hand. . ."
I am not pleading for one-armed bankers, but I do believe this is the moment for a sector initiative to address the questions above. Maybe the WBCSD can play a role in this. This organisation is not part of the sector, which adds to the credibility. Many years ago there was a financial sector in the WBCSD. Since then the sector seems have shifted a bit out of the council’s focus. Would it be a good idea that the WBCSD is going to push the financial sector dialogue and agenda?

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