November 9, 2022 (MLN): The State Bank of Pakistan (SBP) with International Finance Corporation (IFC) has organized a Sustainable Banking Conference to create awareness related to climate change and sustainability within the financial sector, a press release issued on Wednesday showed.
During the meeting, SBP Governor Jameel Ahmed launched an Environmental and Social Risk Management (ESRM) manual for banks and financial institutions as part of ongoing green banking projects.
Governor said, “The ESRM manual is a procedural guide for the banks/DFIs to establish their environmental & social risk management systems, as advised in SBP’s Green Banking Guidelines (GBGs)”.
Furthermore, he highlighted that the conference was an effort to spread awareness on the impact of climate change and environmental degradation on the financial sector of Pakistan and a step towards SBP’s endeavor to reduce the vulnerability of financial sector from such risks.
Pakistan is one of the most vulnerable countries to the impacts of climate change as we have witnessed during the recent floods.
Therefore, it is critical time for Pakistan’s financial sector to become sensitive to financial consequences arising from environmental & social risks, he added.
Governor has encouraged the entire banking industry to take full benefit of the manual to establish their ESRM systems and procedures and SBP will keep on providing necessary support and guidance at every stage of ESRM implementation.
Khawaja Aftab Ahmed, IFC Regional Director for the Middle East, Pakistan and Afghanistan, said that the launch of the ESRM implementation manual marks a significant step towards promoting sustainable banking practices in Pakistan.
ESRM manual can help the banking industry better manage environmental and social risks throughout their lending practices, and subsequently, enable a green and inclusive economic recovery at a critical time for Pakistan, he added.
Moreover, in conference two high-level panel discussions on important topics including ESG integration in financial sector and climate finance risk & climate disclosures were discussed.
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