Policy Guidelines for Green Banking - Page 2 - 1.1.
Is it admitted that the "green credit strategy" is similar to the "E&S strategy? "Banks’ Board of Directors or Council shall promote concepts related to green credit including resource efficiency, environmental protection and sustainable development, emphasize banks’ role in contributing to the comprehensive, balanced and sustainable social and economic development, and develop a sustainable business model that allows win-win for banks and the society at large." "Banks’ Board of Directors or Council is responsible for defining its green credit growth strategy, approves banks’ green credit targets and reports that are developed by senior management, monitors and evaluates banks’ implementation of the green credit growth strategy"
Sustainable Finance Action Plan shall be prepared by board of director and approved by board of commissioner.
Sustainable Finance Guiding Principles : Principle 4 - page 30 (§2) and 32 (risk policies)
The Board of Directors (BoDs) of banks/DFIs should accept overall responsibility of green banking and develop Green Banking Policy of their respective institutions.
Policy Guidelines for Green Banking - Page 2 - 1.1.
"Banks’ senior management shall […] provide annual report on green credit performances to the Board or Council, and report to regulators" "KPI 2.7.3 (1) The board of directors shall put forward report requirements on the management team, and identify report duties undertaken by the management team according to the green credit strategy and objectives approved by the board of directors. " KPI 2.8.6:" Regularly (at least annually) report to the board on the implementation of green credit strategy. "
Description on Board of Directors that must include: a. policy to respond challenges in keeping up with the sustainability strategy, that must cover at least the following:
Providing internal reports to senior and/or strategic decision making bodies within the Bank
The senior management should develop strategies, administrative procedures and accountability mechanisms for implementation of Green Banking Policy approved by the Board.
Guidelines on E&S Risk Management - Page 13 - B.
"KPI 2.7.3 (3) The audit committee of the board of directors shall carry out special audits on typical projects by random selection on environmental and social risks management by hiring the third party audit institution or entrusting the internal audit department of the bank."
Policy Guidelines for Green Banking - Page 2 - 1.1.
Implementation Guidelines V4 - Page 5 - 1.5.
"Banks’ senior management shall identify a senior manager and a department to lead and manage green credit related work and provide necessary resources. If necessary, a cross-function green credit committee may be established to coordinate. "
Sustainable Finance Guiding Principles : Principle 3 - page 29 (§1)
For an ESMS to function properly, it is essential that roles and responsibilities for implementing procedures and making decisions are clearly defined.
Chapter 2 Responsibilities, Management and Organization
Only asked to define a governance
Establish E&S governance responsibility, including clear lines of responsibility and accountability Incorporate ESG to corporate governance especially by defining roles and responsibilities of the board and senior management with regard to ESG issue
Sustainability Guidelines for the Banking Sector - page 14 - paragraph 6
Guidelines on E&S Risk Management - Page 13 - B.
KPI 3.14.5: "(3)To establish a “cross-line” team which can enhance the environmental and social performance of the institution. The members shall include personnel from public relationships, risk management, company line and credit management line." KPI 4.16.2: "To make sure that the employees engaged in project compliance examination have sufficient knowledge and experience, or when necessary, with the help from experts to make proper judgment on the requirements of formal and substantial compliance of the project whom credit will be granted. "
Role description of: relationship managers, credit risk managers/officers, legal department and credit authority.
Audit & Compliance: Green banking is to be incorporated in the scope of compliance and routine internal controls. Appropriate walls should be established between internal audit function and units/lines (and their management) involved in any day-to-day green banking activities to ensure its independence. Specific green banking related checklists should be developed and made part of internal audit reports for each branch and head office unit.
a. description of tasks performed by Board of Directors and Board of Commissioners, employee, official and/or work unit responsible for the application of Sustainable Finance; b. elaboration on competence development for members of Board of Directors and Boards of Commissioners, employee, official and/or work unit responsible for the application of Sustainable Finance;
The Green Banking Officer should be well versed with environmental risk assessment and monitoring, green product development, and operational improvement measures to reduce resource consumption.
