top of page

OUR BANK RATING SYSTEM

Our rating methodology, set out below, describes how we go about investigating, mapping and rating a bank's behaviour.

1. What we look at and how we look into a financial institution.

We assess 3 areas of a bank’s activity in order to rate them.

  1. What they provide funding for

     

  2. Do they have ethical products?

     

  3. What is their policy, practice and transparency?

What & how

2. What we rate them on 

PLANETARY IMPACT

Untitled design (6).png

HUMAN RIGHTS &
SOCIAL IMPACT

TRANSPARENCY

Impact on climate

2.png

Fossil Fuel Finance

1.png

Carbon emissions

3.png

Energy use & efficiency

4.png

Coal

Impact on nature

5.png
6.png
2.png
1.png

Resource management and waste disposal

Animal welfare

Blue impact [ocean]

Sewage

3.png

Chemicals

4.png

Environmental destruction & deforestation

Impact on Human Rights and Social Impact

Bankscore analyses and rates how a bank’s products, financing or operations meet their responsibility to respect human rights and human dignity.    ​

Banks need to fully meet their responsibilities to respect human rights and human dignity across all of their operations as set out in the UN Guiding Principles on business and human rights.

  • Gender equality 

  • Health 

  • Human rights 

  • Labour rights

Transparency and behaviour

We rate institutions on how they behave, this means looking at 3 key elements:

 

  • A bank's stated policy on how their activity impacts and mitigates planetary and human impact and their remediation mechanisms, or lack of. 

  • Transparency concerning their activity.  

  • A bank's action in relation to its policy or lack of.

What rate on

*This is where we look at 'what they provide funding for and how open they are with this information'.

We rate them on 3 areas: 

  • PLANETARY IMPACT

  • HUMAN RIGHTS & SOCIAL IMPACT

  • TRANSPARENCY 

Transparency

Great = These banks demonstrate leadership in all three areas. They are generally highly transparent, and have both strong policies and strong assurance (e.g. from one or more broad-based certification) to address the most material issues.

Good = These banks adopt policies and practices to manage multiple material issues across their supply chain and are often demonstrating leadership in one or more area.

It’s a start = These banks are transparent about their policies and practices to manage some issues and have begun to make some progress on one or more of the issues.

Needs to do better = These banks disclose some information in one or more area and consider some of the material issues but are not yet adequately managing their impacts across their operations and value chains.

Avoid! = These banks disclose little to no relevant or concrete information about their sustainability and social impact practices. In some cases the bank may make ambiguous claims that are unlikely to have a material impact.

Key issue indicator

The key issue indicator flags any specific [or all] areas of material concern that a bank fails to adequately address.   

 

This can also be a contra-indicator to demonstrate specific policy and practice that successfully mitigates an environmental or human rights issue.

Provenance

​Where the information is available, Bankscore will flag any ownership, shareholding or partnerships of an institution that raises concern, as understood by our ratings methodology. 

3. Our ratings system

Untitled design (3).png

A final rating is derived from an average of the bank’s scores for each key area =

(planetary impact + human rights + transparency). 

Great = These banks demonstrate leadership in all three areas. They are generally highly transparent, and have both strong policies and strong assurance (e.g. from one or more broad-based certification) to address the most material issues.

Good = These banks adopt policies and practices to manage multiple material issues across their supply chain and are often demonstrating leadership in one or more area.

It’s a start = These banks are transparent about their policies and practices to manage some issues and have begun to make some progress on one or more of the issues.

Needs to do better = These banks disclose some information in one or more area and consider some of the material issues but are not yet adequately managing their impacts across their operations and value chains.

Avoid! = These banks disclose little to no relevant or concrete information about their sustainability and social impact practices. In some cases the bank may make ambiguous claims that are unlikely to have a material impact.

Key issue indicator

The key issue indicator flags any specific [or all] areas of material concern that a bank fails to adequately address.   

 

This can also be a contra-indicator to demonstrate specific policy and practice that successfully mitigates an environmental or human rights issue.

Provenance

​Where the information is available, Bankscore will flag any ownership, shareholding or partnerships of an institution that raises concern, as understood by our ratings methodology. 

Rating system
bottom of page