PAS 7340:2020

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What is PAS 7340 - Principles of sustainable finance about?

This is the first in an anticipated series of three PASs on sustainable finance. It gives financial services organizations a framework and principles that will help them understand and apply sustainable finance practices and is intended to be internationally applicable.

Who is PAS 7340 - Principles of sustainable finance for?

Financial services organizations of any type or size from across the financial sector. This includes:

• Investment
• Banking
• Insurance
• Intermediaries (e.g. consultants and pensions advisers)
• Regulators
• Central and local government
• Professional bodies

It may be particularly useful to small and medium-sized organizations and is also intended to be relevant to business partners and others who provide services and support to the sector. This wider community could encompass, for example, independent advisers, trustees, premises management firms and accounting, legal, marketing and employment services providers alongside sector specific actors such as claims management firms.

NOTE: This PAS is not intended to be used directly by end consumers of financial products or employees of targeted organizations, but might be of use to such individuals when an organization communicates the steps taken to address sustainability challenges.

Why should you use PAS 7340 - Principles of sustainable finance?

This pioneering document builds on the UK's global leadership in green finance as part of the move to a low carbon economy, and was written in collaboration with the sector.

It outlines a framework for, and guidance on, implementing principles and approaches to sustainable finance within financial services organizations. It establishes guiding principles and common terms and definitions related to sustainable finance which can help organizations to:

• Develop their understanding of sustainable finance and determine its relevance within the individual organization
• Understand what successful sustainable finance practices and activities might look like and how to apply them
• Develop their own strategies and approaches to embedding sustainable finance in their policies, processes, practices, products, services and value chains

The PAS aims to facilitate understanding and collaboration within the global financial sector, and ultimately, the alignment of the sector with sustainability objectives.

The framework is designed to facilitate global aspirations, by enabling individual organizations to identify, develop and maximize opportunities for addressing sustainability challenges, both in the short and the long-term, and in a manner that allows the individual organization to adopt sustainable finance practices. It can be applied to all organizational activities.