The Box: a tool for bank influence

15 minute read

The Box is a tool for investors to use their counterparty selection process to influence bank behaviour. It is derived from traditional market usage, where dealers can be sanctioned by investors for poor behaviour.

This can be extended to ensure longer term climate strategy alignment, alongside best-execution objectives. Through the monitoring of syndication fees, specifically from aligned and non-aligned activities, investors can direct business to the best performers and so incentivise a change in behaviour within banks.

A key focus is fossil investment. AFII has been monitoring syndication league tables of bank activity in the fossil sector, offset by green deals, for two years, which has supported investor and issuer engagement. This note updates league tables as of December 2023 and analyses moves in relative ranking.

Download pdf (0.2mb)