The Sustainable Banking and Finance Network (SBFN, formally the "Sustainable Banking Network" or "SBN") is a unique, voluntary community of financial sector regulatory agencies and banking associations from emerging markets committed to advancing sustainable finance in line with international good practice. The 43-member countries represent US$43 trillion (86 percent) of the total banking assets in emerging markets.
The idea for the SBFN arose during the first International Green Credit Forum, hosted by IFC and the China Banking Regulatory Commission, in Beijing in May 2012, where banking regulators and associations from 10 countries requested that IFC facilitate a global knowledge network on sustainable banking. The Network was formally launched in September 2012.
SBFN members are committed to moving their financial sectors towards sustainability, with the twin goals of improved ESG risk management (including disclosure of climate risks) and increased capital flows to activities with positive climate impact. It is a platform for knowledge sharing and capacity building that facilitates the mobilization of practical support for members to design and implement national initiatives.
South African National Treasury joins SBFN [Link]
The Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market joins SBFN [Link]
SBFN Peer Learning: Indonesia and China Knowledge Exchange on Green Taxonomy Development [Link]
SBFN Peer Learning: Morocco and Ukraine on Promoting Sustainable Finance in the Capital Markets [Link]
The Central Bank of Ecuador joins the SBFN [Link]
Indonesia and South Africa Knowledge Exchange on Green Taxonomy Development [Link]
SBFN Background [PDF]
SBFN Membership Map [PDF]
SBFN Green Bond Toolkit [PDF]
SBFN Measurement Infographic [PDF]
SBFN Webinar Series [Link]
Financial Institutions: Resources, Solutions, and Tools (FIRST) [Link]
WBG Climate Change Action Plan (2021-2025) [Link]
IMF Climate Change Indicators Dashboard [Link]
World Bank Toolkits for Policymakers to Green the Financial System [Link]
NGFS Bridging Data Gaps Report [Link]
CBI published Global State of the Market 2020 Report [Link]
Greening the Banking System: Experiences from the Sustainable Banking and Finance Network (SBFN) [PDF]
Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment [PDF]
Greening Banks and Capital Markets for Growth [PDF]
As capital providers, banks are ideally placed to help the private sector adapt to new economic realities linked to environmental and social (E&S) sustainability – such as climate change, changing communities, and increased resource scarcity – and to contribute to national sustainable development agendas. However, for banks to effectively integrate new practices in E&S risk management and green and inclusive lending, they require an enabling regulatory context that ensures a level playing field and provides the right economic incentives.
With this in mind, a growing number of emerging market banking regulators have started to team up with partner agencies to pioneer the development of regulatory guidance that encourages local banks to adopt sustainable banking practices. This includes more effective management of E&S risks in the projects they finance and support for businesses that are greener, climate friendly and socially inclusive.
To date, 25 countries have launched national policies, guidelines, principles, or roadmaps focused on sustainable banking. They include Bangladesh, Brazil, Cambodia, China, Colombia, Ecuador, Georgia, Ghana, Indonesia, Kenya, Mexico, Mongolia, Morocco, Nepal, Nigeria, Pakistan, Panama, Paraguay, Peru, Philippines, South Africa, Sri Lanka, Thailand, Turkey, and Vietnam. The SBFN provides the institutions a space to exchange experiences, gain knowledge, and collectively drive the sustainable finance agenda.
SBFN Global Meetings are held every two years and are the principal space for dialogue, networking, and knowledge generation. A different member country, in cooperation with IFC, hosts the Global Meeting each time. SBFN members also are invited to participate in IFC-hosted dialogue events and expert groups, such as the annual Performance Standards Community of Learning for financial institutions, which adopted the Equator Principles. These events provide members the opportunity to dialogue with leading worldwide commercial banks, and this interaction is strategic for developing regulatory guidance.
SBFN has four member-led thematic working groups:
SBFN Measurement Working Group, established in 2016, the WG responds to SBFN member demand for a systematic approach to assess and benchmark country progress in developing national sustainable finance frameworks. Up to September 2020, the WG has comprised representatives from 12 countries and regions and was chaired by the China Banking and Insurance Regulatory Commission (CBIRC) and the Indonesia Financial Services Authority (OJK).
The WG has developed and refined a Measurement Framework that was approved by all members and continues to evolve to keep pace with country-level and global developments. New Co-Chairs and members of the WG were announced in October 2020 and are guiding the latest update of the SBFN Measurement Framework as well as development of SBFN’s 3rd Global Progress Report, which will be published in October 2021. Read the MWG Terms of Reference.
In 2019, the Measurement Working group launched the second Global Progress Report and 30 Country Reports: www.ifc.org/sbn2019report.
In 2018, the Measurement Working group launched the first Global Progress Report and 10 Country Reports: www.ifc.org/sbnreport.
Sustainable Finance Instruments Working Group (the former Green Bond Working Group) , established in 2017, this WG responds to members’ interest in the global green bond trend and associated market opportunities. It led to the 2018 report “Creating Green Bond Markets”, which mapped green bond market developments in over 22 emerging markets and included a practical toolkit for SBFN members. Going forward, the WG will expand to reflect new developments in social and sustainability bonds and loans and other financial instruments with green, social, and sustainability benefits.
SBFN International Development Association (IDA) Task Force, established in 2018, responds to low-income members’ interests in finance for climate change. It aims to deepen the sustainable finance framework development and implementation in IDA member-countries. The task force constitutes 11 countries: three in advanced stages of implementing sustainable finance and eight at the outset of their journeys.
The IDA Task Force aspires to raise environment, social, and governance risk management standards in financial markets, to mobilize financing, particularly from private sector, for climate change mitigation and adaptation in line with the Paris Agreement, and to support capital flows that deliver the Sustainable Development Goals. Private sector finance in emerging markets can make a substantial difference.
Data & Disclosure Working Group: Announced in 2019, this WG responds to the current global need for improved data and disclosure by the financial sector to support national sustainable finance ecosystems and enable regulators and supervisory agencies to better assess environmental, social, and governance (ESG) risks at the market level and incentivize the transition to green economies. Recent trends include the growing need for climate-related data, driven by initiatives such as the Task Force on Climate-related Financial Disclosures (TCFD). The WG will map the latest country-level developments in sustainable finance data and disclosure across the SBFN community as well as international initiatives to facilitate the continued development of tools and practical guidance for SBFN members.
SBFN Contact: SBFN Secretariat – SBFN_Secretariat@ifc.org
Media Contact: Kathryn Graczyk – KGraczyk@ifc.org
Short URL for this page: www.ifc.org/sbfn