Banking on Sustainability (March 2007)

Banking on Sustainability. Sustainability is now increasingly recognized as central to the growth of emerging market economies. For the private sector, this represents both a demand for greater social and environmental responsibility as well as a new landscape of business opportunity.

The financial sector has been late to respond to this trend but is emerging as an important driver across all sectors in an economy. In the banking sector, new standards and codes of conduct promote corporate accountability, transparency, and consideration of impacts on environment and society. One clear example is the Equator Principles, based on IFC’s social and environmental performance standards and adopted by an increasing number of banks that operate in developing countries.

IFC is proud of its leadership in creating and applying high social and environmental standards in private sector investments, as well as in supporting innovative business models in areas such as sustainable energy and access to finance for women. Our work in emerging markets has shown us that effectively managing these risks and leveraging opportunities associated with sustainable development can add value for our clients and, as a consequence, for us. The financial sector has become a priority area for IFC and today accounts for approximately 40 percent of IFC’s total portfolio. We believe we are ideally positioned not only to provide financial resources but also to share knowledge to help financial institutions meet and create demand for products and services with a sustainability focus.

For more information about our work see Sustainable Energy Finance or contact us.