B Corp Finance Coalition UK calls for legal change to finance companies’ governance frameworks

Today, the B Corp Finance Coalition UK is calling on finance companies globally to commit themselves to higher levels of stakeholder accountability. The Coalition is asking finance firms to join them and amend their constitutional documents to align with broader stakeholder needs.

Welcoming the announcements made this week by global finance, the Coalition believes a change in corporate governance will unlock deeper, more systemic and lasting change needed to deliver the Paris Agreement. The work currently underway across the finance sector to increase the flow of capital towards sustainable businesses and improve climate and sustainability disclosure is critically important, but missing a key ingredient.

The Founding Members of the Coalition, which spans centuries-old investment banks to fintech start-ups, have all amended their Articles of Association to ensure stakeholder alignment becomes part of their directors’ duties. Through this, they hold their directors responsible for the delivery of that purpose and create a mechanism that enables true accountability.

To further support the Coalition’s call to action, CEOs and Founders from the group are offering to share approaches, best practice and learnings with other CEOs and Board members wanting to respond to the call for change. The Coalition believes only through radical collaboration can the financial sector deliver rapid, meaningful and lasting change.

Founding members of the Coalition said:

“Tackling the world’s greatest challenges requires change at the top now.  Only with the right governance structures can ambitions such as net zero realistically be delivered. Collaboration with peers and competitors alike has led to a Coalition breaking new ground to drive this common goal”. Sophie Kennedy, CEO at EQ Investors

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