Responsible Investment Banking ― Risk Management Frameworks, Sustainable Financial Innovations and Softlaw Standards

This book provides evidence on the relevance of environmental and social factors in decision making, discusses the Gold Standard Frameworks for integrating extra-financial risks into the value chain management procedures of investment banks together with a lot of examples for practical application. It paves the way from robust impact and risk management to positive impact creation and a new investment culture. As well, challenges for the implementation and ways to overcome them are broadly discussed. The book is rooted in the fact that banks which fail to professionally integrate the management of extra-financial risk into their whole lending and investment products chain may well move down the food chain and potentially lose positions on advisory mandates, lead arranger and underwriting mandates and finally client deposits – and trust.

Karen Wendt is head of the Equator Principles Team of a top tier global bank, where she introduced the Equator Principles, an environmental and social risk management framework. Karen started her career at Deutsche Bank after achieving her Bachelors Degree from the University of Regensburg and working for the European Commission. She holds an MBA from the University of Liverpool. Karen Wendt has been one of the initiators of the Equator Principles and is a Member of the Steering Committee of the Equator Principles Financial Institutions Association since its inception. She has undertaken research on investment banking culture, the role of alignment of interests and values and the impact of leadership behavior on trust and value identity. She has more than 20 years experience in investment banking. In addition she is editor of scientific books on the subject of responsible investment banking and positive impact investment and finance.