Since SBN’s inception in 2012, 26 member countries have launched frameworks and issued over a hundred national policies, voluntary industry principles, or guidelines for sustainable finance. In 2020 alone, over a quarter of SBN member countries issued new sustainable finance framework documents. Read more in the SBN 20202 Round-Up.
In 2021, SBN members continue to strengthen environmental and social risk management by financial institutions, tackle the challenges and opportunities brought about by climate change, and leverage sustainable finance to promote economic growth. Below is an ongoing list of their actions and achievements in the year so far:
- On March 30th, central banks of the Association of Southeast Asian Nations (ASEAN) officially endorsed the initiative on the ASEAN Sustainable Banking Principles (SBP), proposed by the State Bank of Vietnam with SBN and IFC support. The SBP will serve as guiding principles to help ASEAN central banks further develop sustainable banking guidelines and tools aligned with each respective country’s context.
- On March 26th, Kenya National Treasury and Planning published the report The Landscape of Climate Finance in Kenya, which is the first attempt to track the country's climate finance flows since the Paris Agreement.
- On March 24th, South Africa’s National Treasury and Financial Sector Conduct Authority (FSCA) and Indonesia’s Financial Services Authority (OJK) conducted a knowledge exchange session on Green Taxonomy Development, faciliated by SBN and IFC. Read more.
On March 24th,
Kenya Bankers Association (KBA) published the "2020 Report on the State of Sustainable Finance in Kenya's Banking Industry", capturing the banking industry's gains in embracing Sustainable Finance practices and highlights areas of opportunity for policy intervention. KBA updated its Sustainable Finance Initiative e-Learning Platform: https://sfi.kba.co.ke/.
- On March 15th 2021, the ASEAN Capital Markets Forum has announced the rolling out of its new five-year action plan (2021-2025). The plan's strategic objectives include fostering growth and recovery with sustainability, promoting and sustaining inclusiveness, and strengthening and maintaining orderliness and resilience.
- On March 14th 2021, Egypt Financial
Regulatory Authority (FRA) issued a decision to establish the Regional Centre for Sustainable Finance, promoting environmental conservation practices and the culture of green economy among banks and within the non-banking financial sectors, the first of its kind in the Middle East and Africa region.
- On March 5th 2021, in the lead up to International Women's Day, Moroccan Capital Market Authority (AMMC) published the Gender Bonds Guidelines, which highlight the relevance of gender equality and women’s empowerment for sustainable finance, provide reference standards, and give guidance for issuing such instruments.
- On March 4th 2021, Bank Al-Maghrib, Morocco's central bank, issued the regulatory guidance on climate and environmental-related financial risks management, setting expectations for banks on managing the financial risks from climate change and the environment.
- On Febrary 17th, 2021, the Brazilian Federation of Banks (FEBRABAN) and IFC announced their collaboration to promote sustainable finance and further align the banking sector with Brazil’s commitments to the Paris Agreement, including building capacity and embedding good practices in climate risk management in bank portfolios.
- On February 12th, 2021, the Moroccan Capital Market Authority (AMMC) and IFC signed a cooperation agreement to promote sustainable finance and improve corporate practices and reporting on environmental, social, and governance (ESG) considerations in the Moroccan capital market.
- On February 2nd 2021, the National Bank of Georgia (NBG) signed its second Cooperation Agreement with IFC, aims to support the NBG in its journey to develop a Sustainable Finance Framework that will cover sustainable finance products and governance of environmental and social matters in Georgia’s financial sector.
In January, Maldives Monetary Authority (MMA) joined SBN. MMA is the central bank of the Maldives and the main regulator of the financial sector in the country. MMA recognizes that sustainable finance is vital for Maldives and is committed to building up market capacity in the near term.
In January 2021, the Bank of Ghana (BOG) issued the Ghana Sustainable Banking Principles' reporting requirements. All banks in Ghana now need to report their environmental and social integration and performance to the BOG periodically.
In January 2021, Chile announced the issuance of $4.25bn-equivalent in green-social
bonds with record-high yields and record-long maturity periods, demonstrating issuer and market confidence in green and social financial instruments.
In January 2021, the Peru Ministry of the Environment (Minam) launched the Green Finance Roadmap (HRFV) to promote environmental considerations in the financial sector's activities.
On January 15th, the Indonesia Financial Services Authority (OJK) issued the Indonesia Sustainable Finance Roadmap Second Phase (2021-2025), developing a nationwide sustainable finance ecosystem driven by both supply and demand sides.
On January 14
th, the National Securities Commission of Argentina (CNV) launched its Sustainable
Finance Program and a public consultation on the creation of a new special regime to promote socially responsible investment, and green, social, as well as sustainability bonds.
On January 11
th, Bangladesh Bank issued the SFD Circular No. 01: Target and
Achievement of Sustainable Finance & Green Finance, setting a 15% target of all loans issued by the nation's banks and other financial institutions (FIs) to meet the broader definition of being “sustainable”. Read more.
On January 4th, Mr. Koba Gvenetadze, the Governor of the
National Bank of Georgia, published an op-ed in The Banker, titled “Georgia
proves the benefits of preparedness” and mentioned SBN as a catalyst for the country’s sustainable finance development.
To share your country’s actions and achievements, please contact the SBN Secretariat at SBN_Secretariat@ifc.org.