New release Fair Finance Methodology 2021

The Fair Finance Guide Methodology has been updated to keep pace with the latest standards and developments in sustainable finance.

As the integration of environmental, social and governance (ESG) aspects in financing and investment decisions continues to evolve, the Fair Finance methodology forms an important instrument to benchmark the financial sector on responsible and sustainable practice, and to advocate for improvements.

With each review Fair Finance International incorporates, as much as possible, the feedback we receive from the financial institutions we engage with, from sector experts, and a broad range of stakeholders.

This latest version of the Methodology contains a series of changes:

• International standards have been updated in themes such as Animal Welfare, Labour Rights and Tax.
• Several assessment elements were removed in themes such as Housing and Real Estate, Consumer Protection and Remuneration.
• New assessment elements were added or adjusted, in themes such as Animal Welfare, Gender Equality, Human Rights, Oil and Gas and Transparency and Accountability.
• Maximum thresholds acceptable have been lowered for scores on the elements relating to fossil fuel policies in the themes Climate Change and Oil and Gas.
• Several definitions have been clarified, such as for proprietary assets, asset management and basic score.