In early March 2014, CEOs and directors of leading sustainable banks from all corners of the world gathered in Melbourne for the week-long annual meeting of the Global Alliance for Banking on Values – a group of banks focused on values-based banking.
As the only Australian member of the Global Alliance, customer-owned bank bankmecu hosted the week of activities, which allowed representatives from the banks to share knowledge and information, learn about responsible banking in Australia, and meet a range of business and community leaders to talk about the role of banks and private finance in solving pressing social and environmental problems.
Damien Walsh, Managing Director of bankmecu, says the week was an opportunity to discuss the emergence of new approaches to finance and investment. “This is a discussion we need to have in Australia as we face the challenges of funding the needs of an ageing society, increasing demand for social services, and the impact of a changing climate and vulnerable natural environment,” says Walsh.
As part of the week’s activities, bankmecu was able to demonstrate some of its different approaches to finance and investment by showcasing the work it does with key partners to help support the community. Representatives from the global banks were also taken on at least two of four ‘learning journeys’ about projects in areas of disability services, secure housing, community finance and environmental initiatives.
The guests heard from organisations such as the Community Housing Federation of Victoria and Port Philip Housing Association about local issues and solutions for affordable and secure housing in Victoria; Early Childhood Intervention Australia, Oakleigh Centre and Shadforth Financial Group on the different services and support they provide to people living with a disability and their families; and Foresters Community Finance on the support and education provided to individuals and organisations requiring finance that otherwise may not receive it from traditional lenders.
The international guests also learned about bankmecu’s Conservation Landbank, the first initiative of its kind in the world by a financial institution. As part of the initiative, bankmecu has purchased unviable farm land in Victoria’s Wimmera region. This land still has remnant but important forest to form, and is home to a number of endangered native animals. The five properties encompassed by the 927-hectare area have been protected against any future destruction by being placed under Trust for Nature conservation covenants, and the area is being restored while providing biodiversity and carbon emission offsets.
The member banks of the Global Alliance each have their own approaches and projects that help create a positive impact for the community and environment.
“As financiers, banks have a responsibility to be actively looking for ways to develop models where investment is effectively used to solve issues and create stronger more resilient communities and a healthier environment,” says Walsh.
“While impact investing and similar ideas are only just emerging in Australia, they are ideas that governments, business and investors would do well to look at more closely so they can develop and bear fruit over the coming years.
“Having the presence of global leaders and experts in this field has provided additional momentum to the work of our bank and our partners in advancing responsible banking in this country.”