Zimbabwe’s banking sector has taken a significant step towards sustainable finance, with the People’s Own Savings Bank (POSB) becoming the first local bank to sign the United Nations Principles for Responsible Banking.
The milestone positions POSB at the centre of a growing shift towards environmentally conscious and socially responsible banking, aligning financial services with global sustainability standards.
The Principles, developed under the United Nations Environment Programme Finance Initiative, provide a framework for banks to align their strategies with the Sustainable Development Goals (SDGs) and the Paris Climate Agreement.
POSB chief executive officer Garainashe Changunda said the move reflects the bank’s long-term transformation agenda anchored on inclusive and sustainable growth.
“As the first bank in Zimbabwe to sign the UN Principles for Responsible Banking, POSB reinforces its long-standing commitment to responsible finance,” he said.
He said the development builds on the institution’s legacy of financial inclusion and community empowerment.
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“For over 120 years, POSB has always been committed to transforming lives through accessible financial services. By joining UNEP FI as a member, we are strengthening our commitment to responsible finance, ensuring that our banking activities contribute more meaningfully to sustainable development, financial inclusion and economic empowerment for all Zimbabweans,” said Changunda.
The bank’s strategy under the new framework will focus on key priority areas, including mobilising savings for productive sectors, expanding financial inclusion and supporting small-to-medium enterprises and agribusinesses.
This is expected to enhance access to banking services, particularly for underserved communities such as women, youth and rural populations, while driving broader participation in the formal economy.
POSB said joining the global initiative will also strengthen governance, lending practices and operational systems, ensuring sustainability considerations are embedded across all aspects of its business.
The bank added that it will improve transparency and accountability through enhanced sustainability monitoring and reporting aligned with international standards.
Changunda said the institution aims to position itself as a leading responsible bank in Zimbabwe.
“Through this commitment, POSB aims to position itself as a leading responsible bank in Zimbabwe, supporting inclusive economic development, climate resilience and sustainable financial systems while transforming lives and positively impacting communities,” he said.
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