Two Canadian companies were listed in the top 15 of the North America Dow Jones Sustainability Index in late 2010, and both are banks: the Bank of Montreal at #3 and National Bank of Canada at #14.

The Canadian banking sector is becoming increasingly appreciative of the strategic benefit of sustainable practices. In addition, aggressive public pressure campaigns about where banks invest continue to grow. The corporate social responsibility tenets of governance and disclosure are being heralded as a tool to maintain and develop confidence in the sector, and for individual reputations.

Strategic, sustainable banking is expected to gain prominence in coming years. Voluntary disclosures, risk management and stakeholder engagement can all provide mutual benefits to institutions and their shareholders in the competitive global financial market.

By Cheryl Johnson, cjohnson@delphi.ca