Is it time for a Principles for Responsible Investment Banking?

While banks have made progress on integrating environmental considerations into areas such as project finance and corporate lending, investment bankers have so far faced few – if any – sustainability-related restrictions on their activities.

On May 29, a fuel tank at a thermal power plant owned by a subsidiary of Norilsk Nickel (Nornickel) in the Russian Arctic failed, flooding the surrounding rivers and subsoil with 21,000 tonnes of diesel oil.

Nornickel claimed the accident was due to melting permafrost. Russian authorities – and environmental groups – disagreed, blaming it on negligence and lack of investment in infrastructure. The company was asked to pay a record Rb148 billion ($2 billion) in compensation.

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