INTERNATIONAL ISO

STANDARD 32210
This is a preview of "ISO 32210:2022". Click here to purchase the full version from the ANSI store.

First edition
2022-10

Sustainable finance — Guidance

on the application of sustainability
principles for organizations in the
financial sector
Finance durable — Lignes directrices pour l’application des principes
de durabilité aux organisations dans le domaine financier

Reference number
ISO 32210:2022(E)

© ISO 2022
ISO 32210:2022(E)

This is a preview of "ISO 32210:2022". Click here to purchase the full version from the ANSI store.

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© ISO 2022
All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may
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 ISO 32210:2022(E)

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Contents Page

Foreword......................................................................................................................................................................................................................................... iv
Introduction..................................................................................................................................................................................................................................v
1 Scope.................................................................................................................................................................................................................................. 1
2 Normative references...................................................................................................................................................................................... 1
3 Terms and definitions..................................................................................................................................................................................... 1
4 Sustainable finance principles............................................................................................................................................................... 6
4.1 General............................................................................................................................................................................................................ 6
4.2 Governance and culture.................................................................................................................................................................. 7
4.3 Strategy alignment and objectives........................................................................................................................................ 8
4.4 Risk and opportunity management and impact assessment......................................................................... 8
4.5 Stakeholder engagement................................................................................................................................................................ 8
4.6 Monitoring, measuring and metrics..................................................................................................................................... 9
4.7 Reporting, transparency and assurance.......................................................................................................................... 9
4.8 Continual improvement and enhancing ambition.................................................................................................... 9
5 Implementation of sustainable finance........................................................................................................................................ 9
5.1 General............................................................................................................................................................................................................ 9
5.2 Governance and culture............................................................................................................................................................... 10
5.2.1 Governing body accountability........................................................................................................................... 10
5.2.2 Systematic review........................................................................................................................................................... 11
5.2.3 Internal performance management and compensation................................................................ 11
5.3 Strategy alignment and objectives..................................................................................................................................... 12
5.3.1 General...................................................................................................................................................................................... 12
5.3.2 Sustainability statement or policy................................................................................................................... 12
5.3.3 Benchmarking and gap analysis......................................................................................................................... 13
5.3.4 Transition plan and strategy implementation plan.......................................................................... 13
5.3.5 Development of new products and services............................................................................................ 13
5.4 Risk and opportunity management and impact assessment...................................................................... 14
5.4.1 General...................................................................................................................................................................................... 14
5.4.2 Organizational-level risk evaluation and impact assessment.................................................. 16
5.4.3 Client, asset and portfolio-level risk and impact assessment.................................................. 17
5.4.4 Scenario analysis.............................................................................................................................................................. 18
5.4.5 Alignment with other principles........................................................................................................................ 20
5.5 Stakeholder engagement............................................................................................................................................................. 20
5.6 Monitoring, measuring and metrics.................................................................................................................................. 22
5.6.1 General...................................................................................................................................................................................... 22
5.6.2 Asset management plan (for real assets)................................................................................................... 23
5.7 Reporting, transparency and assurance....................................................................................................................... 23
5.8 Continual improvement and enhancing ambition................................................................................................. 24
Bibliography.............................................................................................................................................................................................................................. 25

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ISO 32210:2022(E)

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Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www.iso.org/directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www.iso.org/patents).
Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.
For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and
expressions related to conformity assessment, as well as information about ISO’s adherence to
the World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see
www.iso.org/iso/foreword.html.
This document was prepared by Technical Committee ISO/TC 322, Sustainable finance.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www.iso.org/members.html.

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Introduction
Addressing global environmental and social challenges, and supporting sustainability, including
tackling climate change, cannot be reached without the support of the financial sector. In understanding
and developing an alignment of interest in tackling these challenges, organizations can contribute
toward positive environmental and social outcomes, improve governance, address externalities from
owned and financed assets, mitigate risk, realize opportunity and drive value. Transparent assessment,
management and reporting across all dimensions of sustainability can offer confidence and reassurance
to key stakeholders.
This document is designed to support organizations to integrate key principles of sustainability into
operations and activities, to help achieve these mutually beneficial outcomes.
The term “sustainable finance” has not been defined in this document, enabling organizations
to develop their own approach to the integration of sustainability into operations and activities.
However, this document does provide guidance on how key sustainability principles, including those
related to environmental, social and governance factors, can be integrated at the organizational level
into operations and core business strategy. It can support in mitigating risk, realizing opportunity
and driving value. It is designed to be complementary to, and can be implemented alongside, other
sustainability initiatives and requirements. This document is based on application of principles and
processes within an overarching framework. Components of the framework will already exist, at least
in part, within the organization. However, application of the principles and guidance provided in this
document will support in adapting or enhancing these components, so that integration of sustainability
is more effective, efficient and consistent. This document is designed to demonstrate organizational
alignment with wider environmental and social goals such as the appropriate elements of the United
Nations Framework Convention on Climate Change’s Paris Agreement[33] and the United Nations
Sustainable Development Goals[34]. Some elements of this document can also support organizational
alignment with the Task Force for Climate-related Finance Disclosures[31], and other international
initiatives and conventions as appropriate.
Although this document is designed primarily for application by organizations, the principles and
guidance can also be applied at the product and service level across a range of markets and instruments
including within debt, equity, risk transfer, blended products and other financial services.
Implementation of the principles and guidance will require interfacing with a number of organizational
departments, roles and stakeholders. This document can be used by personnel within an organization
and those supporting and advising an organization. Typically, these roles would be associated with
managing and promotion of organizational sustainability performance. However, successful integration
of sustainability is supported by engagement with many internal and external stakeholders, including,
but not limited to, those responsible for:
— fulfilling fiduciary responsibilities;
— setting and monitoring progress against strategic goals;
— understanding and monitoring risk and threats;
— business development including developing new products, services and partnerships;
— ensuring compliance;
— approving investments and capital allocation;
— monitoring investment portfolios;
— training and capacity building;
— mapping and analysing sustainability performance;
— engagement with, and reporting to, stakeholders.

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ISO 32210:2022(E)

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The document has been designed so that an organization can apply the principles and guidance to
the extent applicable, given the organization’s scale, activities, geographical presence and ambition.
Organizations at different stages of integration of sustainability can apply all or parts of the principles
and guidance, depending on existing components and degree of operational capability and capacity.
The document is designed around promoting transparency, so that the organization’s stakeholders can
consider progress and performance.
Assurance of reported operational performance, whether internal or external, can provide additional
trust and confidence to stakeholders and is strongly encouraged.
Organizations using this document will be able to demonstrate alignment with sustainability principles,
guidance and practices, and internal governance provided in this document through their actions,
including stakeholder engagement, reporting and disclosures.
Continual improvement is a core aspect of the principles and guidance. The progression towards greater
sustainability requires ongoing improvement of operational performance and progress to related
sustainable outcomes. Therefore, an organization should ensure it is using relevant good practice,
leading methods and approaches as appropriate.
Key documents and outputs from implementation of the principles and guidance include:
— a sustainability statement or sustainability policy;
— development of strategic goals on material sustainability issues;
— development of suitable metrics and associated key performance indicators;
— executive and governing body accountability for sustainability matters;
— executive compensation aligned with sustainability performance and outcomes;
— a systematic review of existing organizational processes and resources;
— a stakeholder engagement plan;
— a list or register of material sustainability impacts;
— benchmarking, peer review and gap analysis;
— a transition plan;
— a strategic implementation plan;
— scenario analysis, risk impact assessment and mitigation plan;
— public reporting showing material sustainability impacts and relevant progress, performance and
outcomes;
— external assurance.
Additional resources are available on the website of ISO/TC 322 to support users in the application of
the principles and practices provided in this document, see: https://committee.iso.org/home/tc322.

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