Banks face a number of risks related to the activities of their clients. The impact of climate change, resource scarcity, environmental pollution & social issues involuntary resettlement are just some of the factors that might increase the risk incurred by banks extending credit to clients. Yet the lack of environmental & social (e&s) risk management systems hampers the financial sector in identifying and assessing their environmental liabilities, and of managing the risks associated with them in a coherent manner.

The objective of the program is to promote the adoption, implementation and enforcement of internationally agreed E&S standards with a view of boosting the E&S audit performance and thus increase climate-friendly investments in Vietnam, Indonesia, China, Thailand. To that end, the program supports these countries in their endeavors to develop, implement and enforce a set of practical e&srisk management guidelines applicable to financial institutions. These guidelines will draw from international best practices. Specific knowledge and capacity building will be provided to develop, implement and enforce a set of practical environmental risk management guidelines, to individually assist financial institutions and to ramp up the environmental and social risk management consulting and training capacity.

create demand for sustainable banking through regulatory guidelines, minimum standards and policy incentives.

support financial institutions directly through training and knowledge sharing.

establish and boost local environmental and social consulting and training capacity.

Erwartete Resultate:  

Existing E&S risk management policy and procedures are reviewed.

E&S risk management policy and implementation guidelines developed.

Regulators and key national stakeholders sensitized on the E&S risk management.

South-south cooperation and knowledge sharing facilitated.

Phase 1 01.12.2012 - 31.12.2018   (Completed)