Banks and financial institutes are supposed to play/lead a certain role against immoral utilisation and misuse of the environment and human rights violations. However, financial institutes are compelled to review the situation to check the moral codes/ activities of their existing clients and to rethink seriously and positively about the amendment of their internal policies to be always in compliance with the required global pattern of ethical behaviours and moral activities. Therefore, in order to enhance and maintain their good reputation, these two principles of morality and ethical codes must be taken into consideration by the banks as well as by the financial institutes. Even if the national law does not provide ESG laws or regulations, today, some of the banks are implementing them voluntarily, plus the awareness worldwide of the issue of ethics and morality has encouraged the implementation of the two principles as a base and backbone for every commercial dealings.
However, it is important to take into consideration the link/relationship between the financial institutes and the ESG to create a healthy/ improved environment for the concerned humanity. Therefore, the concepts of governance, transparency, risk mitigation and avoiding greenwashing must be applied strictly. This strictness/ toughness should be firmly applied to multinational corporations by ensuring and invoking their absolute liabilities for any environmental damages (onshore or offshore pollution) and human rights violations.
therefore, some of the specialised organisations of the United Nations have especially adopted and encouraged such practices. Moreover, the Paris Convention on Climate Change, attended by most of the world presidents, is a clear indication that the environmental issue has drawn the world's attention as one of the most threatening factors to live, and the world is at risk.
Then, the question posed itself: How can banks incorporate sustainable finance and ESG into their organisations, and how will this affect the world in the future?
Considering the above, the banks and financial institutes are expected to extend their financial assistance by giving financial aid or "donations" to the society at large to improve their life and mitigate any damages that may occur due to any of the above-mentioned violations. Moreover, the banks can lend for sustainable projects, as well as scholarships and training, which may be granted to many organisations and companies so that they can apply sustainability and ESG in their organisations, I presume that such financial aid/help is already included in the financial budgets of the said banks (balance sheets)".
However, I believe that in the near future, it will be compulsory/ imperative to apply a plain provision/ law to prevent and reduce any damages which may occur due to such environmental and human rights violations.
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