Turning the world around: financing positive change, and changing finance

WHAT IS THE GLOBAL ALLIANCE FOR BANKING ON VALUES, JAMES?

The GABV is a global network of values-based banks that use money to deliver social and environmental change. These are banks that place positive impact at the heart of what they do, not at the fringes; lending and investing in the real economy, working with real people who are doing real things to drive change. Positive impact is in their DNA.

There are 70 banks in the network, headquartered in different parts of the world. Our work is focused on supporting CEOs, non-executive directors and senior practitioners who are the principal agents of change.

We build communities of practice, share best practices, roll out programmes and deliver research and resources to support and engage with our members and the broader financial community. We organize around three key pillars: expanding as a network to grow our influence; strengthening our member institutions through programmes and events; and working to influence and help transform the wider banking system. We think of it a bit like this: we’re financing positive change and changing finance.

 

BANKING IS THE SINGLE-LARGEST PROFIT-GENERATING SECTOR IN THE WORLD. HOW DO YOU BALANCE DOING WELL WITH DOING GOOD?

Our members are for profit institutions. They are banks and they exist in the real world where they have to generate a profit to survive. The difference is that for us, profit is a means to an end and not an end in itself. So while we function just like other banks – we work efficiently to manage risk, make good decisions, lend well and pay interest rates to our depositors – our raison d’être isn’t profit but positive change. And being financial resilient is an important prerequisite to making that happen.

Our banks only invest in and lend to organisations that have a positive societal and environmental impact – organisations that are fighting against things like social inequity and climate change – often in parts of the world most vulnerable to it - and building prosperity for everyone. And each member is wholly committed to be transparent around its investments and loans in the real economy.

 

BANKING IS A COMPETITIVE, REGULATED AND DISRUPTED INDUSTRY. WHAT CHALLENGES DO YOUR BANKS FACE?

Well, for a start, our members are typically smaller than conventional banks. So we have to drive efficiency and profitability without the same economies of scale. That said, most of our banks are growing as more and more people want to see their money invested in ways that align with their values; with the way they feel about rising inequality in the world or the need for a low carbon future, for instance.

Awareness remains a challenge, as our members don’t have the budgets and often don’t have the scale to become household names. But when customers bank with us, they get to know us much, much better. Say you bank with Triodos  Bank, one of our founders. You can use your Triodos app to see precisely which enterprises the bank lends to and funds in your local area. And you can do that in real time. You can see the impact of your money and you can even further support the businesses your money helps to finance if you want. So transparency is a huge advantage and opportunity for us.

And where fintech and digital disruption is a challenge to many traditional banks, we see opportunities. Some of our members are already working with AI across a range of areas, including using it to reach communities they previously didn’t, increasing their impact in a profitable way.

WHAT’S YOUR ROLE IN THE ORGANISATION, JAMES?

It’s varied! We are a very small secretariat and there’s a lot to do. There are just eight of us, each doing quite varied roles. I run day-to-day operations which can range from overseeing the income we receive from membership fees to managing day-to-day HR issues. I also work with colleagues to deliver our suite of programmes that range from leadership development through to providing greenhouse gas accounting support to our members to how we engage with, and influence, mainstream financial institutions interested in moving in a more sustainable direction. So I wear different hats.

One of the joys of working in a small organisation, especially a Foundation like ours,  is that you get to roll up your sleeves and get stuck in wherever needed. On the same day you can spend time approving salaries, working with colleagues to host our network’s annual meeting in Latin America, and contribute to work with an African Central Bank looking to build inclusive finance in the region. There is a breadth of activity, a variety and a dynamism that feel quite unique. That said, in my view working in an NGO setting doesn’t imply less professionalism or efficiency than working in the for-profit sector. Ultimately you need to be just as effective, making the most of limited resources, to deliver impact. It’s a privilege to be in that position.

 

WHAT MOTIVATED YOU PERSONALLY TO WORK IN THIS SPACE, AND NOT IN TRADITIONAL BANKING?

Well, let me just start by saying there’s nothing wrong with pursuing a career in sustainability and finance in a conventional financial institution. There are brilliant intrapreneurs working in the big organisations all over the world making incremental but crucial positive changes.

Personally, I was encouraged to look beyond my home country by my late uncle, who ran the Africa Centre in London among other things.  This impacted how I thought about the world at a very young age and made me curious about how other people lived and keen to experience other places.

Given you spend a third of your waking life working(!), it also seemed logical to try to do something I would enjoy and find meaning in. Pretty early on I realised that meant to work with purpose in some way. To be fulfilled in your work I think it’s important to align what you do with what matters to you.

The first part of my career was spent working for the UK government information services with a view to working in a UK development NGO, Voluntary Service Overseas. Having spent some time working for the British Council in New Zealand I returned to the UK where I saw a role advertised at Triodos Bank – an iconic and one of the world’s leading progressive banks. It felt like the perfect marriage of commercial discipline and mission. The GABV was co-founded by Triodos and I was lucky enough to be in the right place at the right time to make the shift and support the GABV’s founding team in the Netherlands, and later move to work for the network full-time.

AND OF COURSE, DURING YOUR TENURE, THE GABV HAS PARTNERED WITH CEMS?

Yes, and it’s a fantastic synergy. We’ve been able to work with brilliant CEMSies on fascinating projects such as assessing the value creation of using the Partnership for Carbon Accounting Financials, or PCAF, an industry-leading greenhouse gas accounting methodology – we are the beneficiaries of their knowledge, their talent, energy and dynamism. At the same time, it’s hugely gratifying to know that we are connecting with young people – with a future generation of leaders and decisionmakers. It’s a win-win for us.

TALKING OF CEMS, IS THERE ANYTHING YOU WOULD SAY TO OUR COMMUNITY OF FUTURE LEADERS READING THIS INTERVIEW?

Well, my advice would be start by thinking about what aligns best to you and to your values when you are thinking about your career.

You will spend a lot of your life working, and you might find it more fulfilling to do something that you feel really matters. If you do choose to work for an NGO, you may not make as much money as at another institution – though you should ask for a fair reward for your work and talent.

It’s important to be curious and to be bold about what you can achieve. So, ask for things. If you want to work in different areas, say so; be courteous of course, but don’t worry about appearing to be ambitious.

And finally, be prepared to work hard but remember that hard work is a leveller not a differentiator. Working in purpose-driven organisations is not an easy option. And it’s not for everyone. But for many, it’s a fabulous way to spend your time. If you are contributing to the sort of change you want to see, the hours you put in will feel more than worth it.