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Indicators for global benchmarking of sustainable finance
ESG INTEGRATION E&S risk management
  • E&S policy

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    Does the framework ask FIs to formalize an E&S or ESG policy?

    Answer Source Reference
    • (1) - Page 2 - 1.1.

    • (1) - Page 3 - 2.

    • (2) - Page 5 - 1.5.

    • (1) - Chapter III, 10 (page 2) (3) 3.10.1-3.10.4 Formalize E&S policy

    • (1) - Strategy n°3 - A)

    • (1) - Page 2 - Estrategia 3

    • (1) - ESG Risk Management

    • (2) - page 7 - Section II Article 4 (1)

    • (1) : Principle 3 - page 28 (§1)

    • (1) - Page 9 - Pilar estrategico #2

    • (1) - Principle 1 - Demonstrating progress - p.9

    • (1) - page 13 (Step 3, §2 and 1st cross-sectoral measures)

    • 7.1 (p13)

    • (1) - page 11, §2; Principle 1 page 19, §4 "Development of appropriate E&S policies" and §5 "Development of appropriate E&S procedures"

    • (1) - 1.2 §2 p2

    • (1) - Page 2 - 2.

    • (1) - Page 9 - Articulo 6°

    • (1) - Page 4 - Article 5°

    • (4) Principle 13 - 25 & Principle 14 - 29.b

    • (2) Sri Lankan Sustainable Banking Principles - Principle 1 - https://sustainablebanking.lk/industry-guiding-principles (1) 3.2.2 ESG Risk Management

    • (1) - page 17 - paragraph 1

    • (1) - page 2 - IV. 1.&2.

    Does the framework encourage FIs to go beyond E&S requirements of local laws and regulations?

    Answer Source Reference
    • (1) - Page 5 - 2.5.

    • (3) - Page 2 - Article 8

    • (2) - Page 5 - 1.5.

    • N/A

    • (2) - ESTÁNDARES E INICIATIVAS NACIONALES E INTERNACIONALES

    • (1) - Page 2 - Estrategia 2

    • N/A

    • N/A

    • (1) : Best practice - page 16 (intro)

    • (1) - Page 9 - Pilar estrategico #2 - a.

    • (1) - All Principles - "Good Practice References"

    • (2) - page 7 (2., §2) (5) 5. Engagement 1 page10

    • 2 (p7), 5(p9)

    • (1) - Sector Guidelines (Appendixes)

    • N/A

    • (2) - 2. Análisis de Riesgos Ambientales y Sociales 2.

    • N/A

    • N/A

    • (1) - 4.1.2

    • N/A

    • (1) - page 13

    • (1) - page 2 - IV. 1. c)

    Does the framework ask FIs to set E&S objectives and targets?

    Answer Source Reference
    • (1) - Page 4 - 2.2.

    • N/A

    • N/A

    • (1) - Chapter II, 8. (page 2) (3) - 2.7.2, 5.23.1-3 Objective and KPIs

    • N/A

    • N/A

    • N/A

    • (2) - page 21 - II. A. 4. c.

    • N/A

    • N/A

    • (1) - Principle 7 - Implementation - p.23

    • N/A

    • 7.1 (p13)

    • (1) - page 5, §7 "Measure and report progress", Principle 9 page 31 §5 " Set clear targets and relevant performance indicators"

    • (1) - 2.3 p5

    • N/A

    • N/A

    • N/A

    • (4) Principle 3 - 14.d

    • (2) Sri Lankan Sustainable Banking Principles - Principle 10 - https://sustainablebanking.lk/industry-guiding-principles

    • (1) - page 17 - paragraph 1

    • (3)

    Does the framework ask FIs to publicly disclose their E&S policy and its governance?

    Answer Source Reference
    • (1) - Page 2 - 1.9.

    • (1) - Page 3 - 4.

    • N/A

    • (1) - Chapter V, 24 (page 4) (3) - 5.24.1 Information disclosure

    • N/A

    • N/A

    • The Law of Georgia on Accounting, Reporting and Auditing. (2) - CG code for banks - Art 20. Information disclosure and transparency - p.25

    • (2) - page 14 and page 22 - II. Executive Summary and II. A. 5. Sustainability governance

    • N/A

    • N/A

    • (1) - Principle 7 - Demonstrating progress - p.24

    • (1) - page 7 (Axis 5, Banking Sector)

    • N/A

    • (1) - Principle 1, page 11 1st row tab "Demonstrating Progress" (E&S policies developed and implemented) Nigerian Code of Corporate Governance for public Companies, page 34 (28.3)

    • N/A

    • N/A

    • (1) - Page - Articulo 11° - Divulgacion de la informacion

    • N/A

    • (4) Principle 3 - 34.h

    • N/A

    • (1) - page 18 - paragraph 2

    • (1) - page 3 - IV. 3.

  • Risk assessment

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    Does the framework require FIs to carry out appropriate E&S due diligence at transaction level?

    Answer Source Reference
    • (2) - Page 7 - 2. & 3.

    • (1) - Page 3 - 2.

    • (2) - Page 5 - 1.5.

    • (1) - Chapter IV, 15 (page 3) (3) 4.15.1-4.15.7 ESDD for client and its project

    • (1) - Strategy n°3 - A)

    • (1) - Page 2 - Estrategia 3 a) & b)

    • N/A

    • N/A

    • (1) : Principle 3 - page 28 (§1) Difference between transaction / client level is not clear

    • (1) - Page 9 - Pilar estrategico #2 - b.

    • (1) - Principle 1 - Demonstration progress - p.8

    • (1) - page 12 (I., §4 "Step 1") & 13 (Banking Sector, §1)

    • 5 (p9-10), 7.3 (p14)

    • (1) - Principle 1, page 10 §1 "Categorisation of potential E&S risks"

    • (1) - 3.3.2.1 §1&2 p9

    • (1) - Page 2 - 2.

    • (1) - Page 9 - Articulo 7°

    • (1) - Page 3 - Article 4°

    • (1) - 4.2.2 & 4.2.4

    • (2) Sri Lankan Sustainable Banking Principles - Principle 1 - https://sustainablebanking.lk/industry-guiding-principles (1) 3.2.2 ESG Risk Management

    • (1) - page 7 (1.a 2.) and page 8

    • (1) - page 2 - IV. 2.

    Does the framework require FIs to carry out appropriate E&S due diligence at client level?

    Answer Source Reference
    • (2) - Page 7 - 2. & 3.

    • (1) - Page 3 - 2.

    • (2) - Page 5 - 1.5.

    • (1) - Chapter III, 11 (page 2) and Chapter IV, 15 (page 3)

    • (1) - Strategy n°3 - A)

    • (1) - Page 2 - Estrategia 3 a) & b)

    • N/A

    • (1) - page 15 - IV 3) d

    • (1) : Principle 3 (page 28, §2) and Principle 4 (page 30, §3)

    • (1) - Page 9 - Pilar estrategico #2 - a.

    • (1) - Principle 1 - Demonstration progress - p.8

    • N/A

    • 5 (p9-10)

    • (1) - Principle 1, page 8, §1, page 9 §1

    • N/A

    • (2) - page 5 - Monitoreo y Seguimiento de la gestión de la organización

    • (1) - Page 9 - Articulo 7°

    • (1) - Page 3 - Article 4°

    • (1) - 4.2.1, 4.2.2 & 4.2.3

    • (2) Sri Lankan Sustainable Banking Principles - Principle 6 - https://sustainablebanking.lk/industry-guiding-principles

    • (1) - page 7 (1.a 1.)

    • (1) - page 2 - IV. 2.

    Does the framework encourage FIs to categorize projects/clients according to their level of E&S risk?

    Answer Source Reference
    • (2) - Page 7 - 2. & 3. and Page 18 - F.

    • (1) - Page 3 - 2.

    • (2) - Page 5 - 1.5.

    • (1) - Chapter III, 11 (page 2) (3) - 3.11.1-3.11.5 Categorization and 4.17.1

    • (1) - Strategy n°3 - B)

    • (1) - Page 2 - Estrategia 3 b)

    • N/A

    • (1) - page 19 - B, and page 20 - Table 5.1

    • (1) : Principle 3 - page 28 (§1)

    • (1) - Page 9 - Pilar estrategico #2 - b.

    • (1) - Principle 1 - Implementation - p.7

    • (1) - page 12 (I., §4 "Step 1") & 13 (Banking Sector, §1 & 2)

    • 7 (p12), 7.3 (p14), 7.3.4 (p18)

    • (1) - Principle 1, page 10 §1 "Categorisation of potential E&S risks"

    • (1) - 3.3.2.2 §1 p10

    • (2) - page 5 - 2. Análisis de Riesgos Ambientales y Sociales 3.

    • (1) - Page 14 - 9.3.2.

    • (1) - Page 5 - Article 8°

    • (1) - 4.2.1, 4.2.2 & 4.2.3

    • (2) Sri Lankan Sustainable Banking Principles - Principle 1 - https://sustainablebanking.lk/industry-guiding-principles

    • (1) - page 8

    • N/A

    For high-risk transactions, does the framework encourage site visits to be organized?

    Answer Source Reference
    • (2) - Page 18 - H.

    • N/A

    • (2) - Page 27

    • (3) - 4.20.1

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • (2) - p.10; (3) - p.9; (4) - p.9; (5) - p.9

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • (1) - Page 17 - 10.2.

    • (1) - Page 7 - Article 11°

    • N/A

    • N/A

    • (1) - page 8

    • N/A

    In case of negative E&S impacts, does the framework invite FIs to engage with clients to implement mitigation measures?

    Answer Source Reference
    • (1) - Page 5 - 2.6.

    • N/A

    • (2) - Page 5 - 1.5.

    • (1) - Chapter III, 11 (page 2) (3) 4.17.5 E&S risk mitigation measures

    • N/A

    • N/A

    • N/A

    • N/A

    • (1) : Principle 3 - page 28 (§1)

    • N/A

    • (1) - Principle 1 - Demonstration progress - p.8

    • N/A

    • 7(p11), 7.3.5 (p19)

    • (1) - Principle 1, page 10 §2 "Development and customisation of E&S due diligence procedures"

    • (1) - 3.3.2.3 b) p12 (1) - 3.3.2.2 §1 p10

    • (2) - page 5 - 2. Análisis de Riesgos Ambientales y Sociales 4.

    • (1) - Page 10 - Articulo 7°

    • (1) - Page 6 - Article 9° - d) - e) - f)

    • N/A

    • N/A

    • (1) - page 8

    • N/A

  • E&S covenants

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    Does the framework ask FIs to incorporate E&S covenants and investment conditions into legal agreements with clients?

    Answer Source Reference
    • (2) - Page 18 - G.

    • N/A

    • (2) - Page 5 - 1.5.

    • (1) - Chapter IV, 18 (page 3) (3) - 4.18.1 & 4.18.2

    • (2) – Anexo 3

    • N/A

    • N/A

    • N/A

    • N/A

    • (1) - Page 10 - Pilar estrategico #2 - d.

    • (2) - p.9; (3) - p.9; (4) – p.9; (5) - p.10

    • (1) - page 12 (I., §2)

    • 7.3 (p14), 7.3.3 (p16), 7.3.5 (p19)

    • (1) - Principle 1, page 10 §2 "Development and customisation of E&S due diligence procedures"

    • (1) - 3.3.2.3 c) p12

    • (2) - page 5 - 2. Análisis de Riesgos Ambientales y Sociales 7.

    • (1) - Page 17 - 10.2.

    • (1) - Page 8 & 9 - Article 17°

    • N/A

    • (1) 3.2.2 ESG Risk Management

    • (1) – page 9 (2.)

    • N/A

  • Project supervision & portfolio review

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    Does the framework ask FIs to develop processes to manage E&S risks during supervision?

    Answer Source Reference
    • (2) - Page 18 - H.

    • (2) - Art. 6.

    • (2) - Page 5 - 1.5.

    • (1) - Chapter IV, 18 (page 3) (3) - Article 20, 4.20.1-4.20.4 Portfolio management and supervision policy

    • (1) - Strategy n°3 - B)

    • N/A

    • N/A

    • N/A

    • (1) : Principle 3 - page 28 (§1)

    • (1) - Page 10 - Pilar estrategico #2 - c.

    • (9) - p.12

    • N/A

    • 7(p12), 7.3 (p14), 7.3.7 (p19)

    • (1) - Principle 1, page 10 §2 "Development and customisation of E&S due diligence procedures" and §3 "Monitoring E&S risks and reviewing E&S conditions"

    • (1) - 3.3.2.3 d) p12

    • N/A

    • (1) - Page 15 - 9.4.1. Customer E&S Report

    • (1) - Page 8 - Article 16

    • (1) - 4.2.4

    • N/A

    • (1) - page 7 and page 8

    • (1) - page 2 - IV. 2. c)

    Does the framework encourage a periodic review of E&S risks at aggregate portfolio level?

    Answer Source Reference
    • (2) - Page 18 - J.

    • N/A

    • N/A

    • (1) - Chapter IV, 20 (page 4) (3) 4.20.3 Portfolio E&S analysis and stress testing

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • 7.3.8 (p19), 9 (p20)

    • (1) - Principle 1, page 11&12 4th line of tab Demonstratin Progress "E&S Management System reporting"

    • (1) - 3.3.3 §3 p14

    • N/A

    • (1) - Page 15 - 9.4.2. Periodic E&S Reports

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

  • Training

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    Does the framework ask FIs to develop and maintain E&S capacity through regular training?

    Answer Source Reference
    • (1) - Page 2 - 1.8.

    • (2) - Art. 3.

    • (2) - Page 7 - 2.5.

    • (1) - Chapter III, 14 (page 3) (3) - 3.14.4 Green credit training

    • (1) - Disclosure - A)

    • (1) - Page 3 - TERCERO - Divulgacion - a)

    • N/A

    • (3) - page 22

    • (1) : HR Policies - page 32 (§3)

    • (1) - Page 12 - Pilar estrategico #5 - b.

    • (1) - Principle 1 - Demonstrating progress - p.8

    • (1) - page 18 (Cross-sectoral measures, §2) and 19 (Casablanca Finance City, §1 & 2)

    • 7.1 (p13), 8 (p20)

    • (1) - Principle 1, page 11 §1 "Provision of client engagement guidance on E&S issue"; Principle 7 page 26 §6 " Provide Sustainable Banking training sessions" and §7 " Create practical E&S training tools and resources"

    • (1) - 2.2 iv p5

    • (2) - page 5 - 2. Análisis de Riesgos Ambientales y Sociales 8.

    • (1) - Page 9 - Articulo 7°

    • N/A

    • (1) - 3.5

    • (2) Sri Lankan Sustainable Banking Principles - Principle 8 - https://sustainablebanking.lk/industry-guiding-principles (1) 3.4.2 Capacity building for financial institutions

    • (1) - page 15

    • (1) - page 1 - II. 2. (2) - page 2 - 2.2. a)

    Does the framework highlight the training of (i) front office staff, (ii) second lines of defense (risk officers and/or compliance officers), and (iii) E&S experts?

    Answer Source Reference
    • N/A

    • N/A

    • N/A

    • N/A

    • (2) - Plan de formacion y capacitacion

    • N/A

    • N/A

    • (1); (2) - Article 7 (2)

    • (1) : HR Policies - page 32 (§3)

    • N/A

    • (1) - Principle 8 - Implementation - p.23; Demonstrating progress - p.24; (9) - Policy Implementation/B.Resources and Training - p.12

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • (1) - page 15

    • N/A

  • External communication mechanism

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    Does the policy require FIs to establish and maintain an inquiry/complaints/grievance mechanism in relation to E&S or ESG practices?

    Answer Source Reference
    • (1) - Page 19. I.

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • (2) - page 24 and page 25 - 3) b. and 3) e. 6)

    • (1) : Principle 3 - page 29 (§2)

    • N/A

    • (1) - Principle 6 - Implementation of Principle 6 - p.18

    • N/A

    • N/A

    • (1) - Principle 3, page 17 §1 " Integration of human rights due diligence into E&S procedures"

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • N/A

    • (1) - page 12

    • N/A

  • E&S reporting

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    Does the policy require FIs to report regularly on E&S or ESG performance, including publicly, to investors or to regulators?

    Answer Source Reference
    • (1) - Page 5 - 3.2.

    • (3) - Page 6 - Chapter IX - Article 22

    • (2) - Page 26 - Annex 1

    • (1) - Chapter IV, 20 (page 4) (3) 5.24.2-3 Information report for major risk project and stakeholder engagement

    • (1) - Disclosure - D)

    • (1) - Page 3 - TERCERO - Divulgacion

    • (1) Transparency and Marker Discipline - p.10 & 11

    • (1); (2)

    • (1) : Principle 5 - page 31 (§2)

    • (1) - page 12 - Pilar estrategico #5

    • (1) - Principle 7 - Implementation - p.23 (1) - Principle 7 - Demonstrating progress - p.24

    • N/A

    • 7.3 (p14), 7.3.8 (p19)

    • (1) - Principle 9, page 30 "Implementation of Principle 9" (2) - Question 1.4 Principle 1 (page 4)

    • N/A

    • (2) - disclosure -1

    • (1) - Page 20 - Articulo 11° - Divulgacion de la informacion

    • (1) - Page 9 - Article 18°

    • (4) page 41 "Disclosure on Application of King IV"

    • (1) 3.6.3 For financial institutions to measure progress and impacts (1) 3.6.2 For regulators to measure progress and impacts (2) Sri Lankan Sustainable Banking Principles - Principle 10 - https://sustainablebanking.lk/industry-guiding-principles

    • (1) - page 17

    • (1) - page 3 - IV. 3. & 4.

    Does the policy make E&S or ESG reporting and disclosure more consistent across financial institutions through principles, guidelines, or templates?

    Answer Source Reference
    • (1) - Page 7 - 1.

    • N/A

    • N/A

    • (2) & (3)

    • N/A

    • N/A

    • N/A

    • (3) - page 22 - A

    • N/A

    • N/A

    • (1) - Principle 7 - Implementation - §2 - p.23

    • N/A

    • Annex 11 (p56-57)

    • (1) - Sector Guidelines (Power, Oil & Gas and Agriculture) (2)

    • (1) - 3.3.2.1 §2 p9 (1) - 3.3.2.2 §1 p11

    • N/A

    • N/A

    • (2)

    • N/A

    • N/A

    • (1) - Appendix I page 19

    • (1) - page 3 - IV. 4.

Source Reference
(1) - Page 2 - 1.1.

Policy Guidelines for Green Banking - Page 2 - 1.1.

Source Reference
(1) - Page 3 - 2.

Source Reference
(2) - Page 5 - 1.5.

Implementation Guidelines V4 - Page 5 - 1.5.

Source Reference
(1) - Chapter III, 10 (page 2) (3) 3.10.1-3.10.4 Formalize E&S policy

"Banks shall develop and improve policies, systems and procedures for E&S risk management"

Source Reference
(1) - Strategy n°3 - A)

Source Reference
(1) - Page 2 - Estrategia 3

Source Reference
(1) - ESG Risk Management

The NBG has already started working on integration of ESG factors in corporate governance (CG) codes for capital market and commercial banks. The CG code for capital market indicates that ESG considerations must be the part of the entity’s strategy, while ESG risks should be incorporated in its risk management system

Source Reference
(2) - page 7 - Section II Article 4 (1)

Source Reference
(1) : Principle 3 - page 28 (§1)

Sustainable Finance Guiding Principles : Principle 3 - page 28 (§1)

Source Reference
(1) - Page 9 - Pilar estrategico #2

Source Reference
(1) - Principle 1 - Demonstrating progress - p.9

In order to demonstrate progress in implementing this principle, a Bank should: • Develop and implement a sustainable finance policy and procedures which provide an overall approach to avoiding, minimising or mitigating damage to the environment

Source Reference
(1) - page 13 (Step 3, §2 and 1st cross-sectoral measures)

Source Reference
7.1 (p13)

An E&S policy states a B/FI’s vision and mission with respect to the environment, society and contributions to sustainable development. It is a short, written statement, approved and supported by senior management that articulates the B/FI’s commitment to integrating E&S considerations into its business activities as well as contributions to sustainable development. The typical E&S policy may include one or more the following statements and commitments: [list of 7 aspects].

Source Reference
(1) - page 11, §2; Principle 1 page 19, §4 "Development of appropriate E&S policies" and §5 "Development of appropriate E&S procedures"

Source Reference
(1) - 1.2 §2 p2

Fully implemented, it is expected that banks/DFIs have a system in place that includes the following features: - A policy on green banking, which informs stakeholders such as banks/DFIs’ clients, investors and employees, authorities and peers that environmental considerations are part of the overall banking activities and how this will impact the mutual business relationship.

Source Reference
(1) - Page 2 - 2.

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(1) - Page 9 - Articulo 6°

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(1) - Page 4 - Article 5°

Source Reference
(4) Principle 13 - 25 & Principle 14 - 29.b

The Code for Responsible Investing has not be considered as part of the framework.

Source Reference
(2) Sri Lankan Sustainable Banking Principles - Principle 1 - https://sustainablebanking.lk/industry-guiding-principles (1) 3.2.2 ESG Risk Management

Develop an appropriate E&S policy in line with financial products and services offered and with priority sectors; at minimum a strict review and potential decline of clients or engagements that do not comply with local E&S laws and regulations. Incorporate ESG risk management to entire decision-making processes, including environmental and social policies,

Source Reference
(1) - page 17 - paragraph 1

Sustainability Guidelines for the Banking Sector - page 17 - paragraph 1

Source Reference
(1) - page 2 - IV. 1.&2.

Directive on - page 2 - IV. 1.&2.

Source Reference
(1) - Page 5 - 2.5.

Policy Guidelines for Green Banking - Page 5 - 2.5.

Source Reference
(3) - Page 2 - Article 8

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(2) - Page 5 - 1.5.

Implementation Guidelines V4 - Page 5 - 1.5.

Source Reference

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(2) - ESTÁNDARES E INICIATIVAS NACIONALES E INTERNACIONALES

Source Reference
(1) - Page 2 - Estrategia 2

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Source Reference

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(1) : Best practice - page 16 (intro)

Sustainable Finance Guiding Principles : Best practice - page 16 (intro)

Source Reference
(1) - Page 9 - Pilar estrategico #2 - a.

Source Reference
(1) - All Principles - "Good Practice References"

Source Reference
(2) - page 7 (2., §2) (5) 5. Engagement 1 page10

Source Reference
2 (p7), 5(p9)

The Guideline requires all B/FIs engaging in the types of transactions mentioned above to develop and implement an ESMS consistent with local environmental and social laws and regulation and overtime with recognized international standards. In order to identify, manage and mitigate E&S risks, all B/FIs engaged in any of the above types of financing are required to develop a robust ESMS, consistent with national laws and international best practice.

Source Reference
(1) - Sector Guidelines (Appendixes)

Source Reference

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(2) - 2. Análisis de Riesgos Ambientales y Sociales 2.

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(1) - 4.1.2

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(1) - page 13

Sustainability Guidelines for the Banking Sector - page 13

Source Reference
(1) - page 2 - IV. 1. c)

Directive on - page 2 - IV. 1. c)

Source Reference
(1) - Page 4 - 2.2.

Policy Guidelines for Green Banking - Page 4 - 2.2.

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(1) - Chapter II, 8. (page 2) (3) - 2.7.2, 5.23.1-3 Objective and KPIs

"Banks’ senior management shall, following decisions made by the Board or Council, develop green credit targets" "The board of directors approves the implementation of the annual and middle and long term objectives of green credit strategy."

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(2) - page 21 - II. A. 4. c.

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(1) - Principle 7 - Implementation - p.23

As part of its sustainable finance policy and procedures, a Bank will regularly and frequently monitor and measure performance against each of the Principles and will report progress against targets to its relevant internal and external stakeholders.

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7.1 (p13)

The typical E&S policy may include (…) setting strategic E&S objectives, such as offering new products that address E&S sustainability.

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(1) - page 5, §7 "Measure and report progress", Principle 9 page 31 §5 " Set clear targets and relevant performance indicators"

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(1) - 2.3 p5

The Office is expected to support the Board in development of Green Banking Policy and also facilitate other functions/departments in development of green banking strategies/targets and budgets.

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(4) Principle 3 - 14.d

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(2) Sri Lankan Sustainable Banking Principles - Principle 10 - https://sustainablebanking.lk/industry-guiding-principles

Set clear targets and related performance indicators, ensure the required systems are in place to collect reliable data

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(1) - page 17 - paragraph 1

Sustainability Guidelines for the Banking Sector - page 17 - paragraph 1

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(3)

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(1) - Page 2 - 1.9.

Policy Guidelines for Green Banking - Page 2 - 1.9.

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(1) - Page 3 - 4.

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(1) - Chapter V, 24 (page 4) (3) - 5.24.1 Information disclosure

"Banks shall disclose green credit strategy and policies, and green credit implementation status." KPI 5.24.1 "To issue green credit/ social responsibilities report/ sustainable development report of the institution and disclose information cared by stakeholders:"

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The Law of Georgia on Accounting, Reporting and Auditing. (2) - CG code for banks - Art 20. Information disclosure and transparency - p.25

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(2) - page 14 and page 22 - II. Executive Summary and II. A. 5. Sustainability governance

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(1) - Principle 7 - Demonstrating progress - p.24

Publicly report on progress, successes and relevant dilemmas in implementing the Sustainable Finance Principles, around relevant themes contained in each principle, such as environmental protection, human and labour rights, cultural heritage, supporting green economy growth, financial inclusion, etc. on an annual basis.

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(1) - page 7 (Axis 5, Banking Sector)

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(1) - Principle 1, page 11 1st row tab "Demonstrating Progress" (E&S policies developed and implemented) Nigerian Code of Corporate Governance for public Companies, page 34 (28.3)

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(1) - Page - Articulo 11° - Divulgacion de la informacion

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(4) Principle 3 - 34.h

The Code for Responsible Investing has not be considered as part of the framework. " at least once a year, fully and publicly disclose to what extent it applies to CRISA."

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(1) - page 18 - paragraph 2

Sustainability Guidelines for the Banking Sector - page 18 - paragraph 2

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(1) - page 3 - IV. 3.

Directive on - page 3 - IV. 3.

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(2) - Page 7 - 2. & 3.

Guidelines on E&S Risk Management - Page 7 - 2. & 3.

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(1) - Page 3 - 2.

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(2) - Page 5 - 1.5.

Implementation Guidelines V4 - Page 5 - 1.5.

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(1) - Chapter IV, 15 (page 3) (3) 4.15.1-4.15.7 ESDD for client and its project

"Banks shall strengthen due diligence. Banks shall determine scope of E&S risk due diligence based on sectors and geographic features of clients or their projects, to ensure a comprehensive, thorough and detailed assessment."

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(1) - Strategy n°3 - A)

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(1) - Page 2 - Estrategia 3 a) & b)

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(1) : Principle 3 - page 28 (§1) Difference between transaction / client level is not clear

Sustainable Finance Guiding Principles : Principle 3 - page 28 (§1) Difference between transaction / client level is not clear

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(1) - Page 9 - Pilar estrategico #2 - b.

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(1) - Principle 1 - Demonstration progress - p.8

Develop and implement a sustainable finance policy and procedures which provide an overall approach to avoiding, minimising or mitigating damage to the environment that includes : Environmental considerations and criteria in due diligence and business decision-making processes for potential clients and transactions;

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(1) - page 12 (I., §4 "Step 1") & 13 (Banking Sector, §1)

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5 (p9-10), 7.3 (p14)

The transaction types for which the ESRM Guideline is applicable are SME finance, commercial leasing, Term Finance, and project finance.

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(1) - Principle 1, page 10 §1 "Categorisation of potential E&S risks"

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(1) - 3.3.2.1 §1&2 p9

The EnvDD is a systematic procedure carried out to assess environmental implications and their effect on the credit quality of a particular financing transaction, The checklists should reflect the different credit approval levels and standardize due diligence procedures providing uniform results for similar business transactions across the bank/DFI.

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(1) - Page 2 - 2.

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(1) - Page 9 - Articulo 7°

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(1) - Page 3 - Article 4°

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(1) - 4.2.2 & 4.2.4

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(2) Sri Lankan Sustainable Banking Principles - Principle 1 - https://sustainablebanking.lk/industry-guiding-principles (1) 3.2.2 ESG Risk Management

E&S procedures among others include risk screening, risk categorization into high , medium , low risks and determining required due diligence procedures, related governance provisions and risk monitoring. Incorporate ESG risk management to entire decision-making processes, including environmental and social policies, risk assessment, environmental and social covenant (in loan agreements or other financial legal documents), project supervision and portfolio review,

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(1) - page 7 (1.a 2.) and page 8

Sustainability Guidelines for the Banking Sector - page 7 (1.a 2.) and page 8

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(1) - page 2 - IV. 2.

Directive on - page 2 - IV. 2.

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(2) - Page 7 - 2. & 3.

Guidelines on E&S Risk Management - Page 7 - 2. & 3.

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(1) - Page 3 - 2.

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(2) - Page 5 - 1.5.

Implementation Guidelines V4 - Page 5 - 1.5.

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(1) - Chapter III, 11 (page 2) and Chapter IV, 15 (page 3)

"Banks shall develop a client E&S risk rating standard to assess and categorize clients’ E&S risks." "Banks shall strengthen due diligence. Banks shall determine scope of E&S risk due diligence based on sectors and geographic features of clients or their projects, to ensure a comprehensive, thorough and detailed assessment."

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(1) - Strategy n°3 - A)

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(1) - Page 2 - Estrategia 3 a) & b)

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(1) - page 15 - IV 3) d

In this stage, banks may develop systems that integrate social risk, environmental risk, and governance into the overall risk management of the banks. The integration process is performed on credit/financing/funding assessments, corporate risk portfolios, SOP, and due diligence.

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(1) : Principle 3 (page 28, §2) and Principle 4 (page 30, §3)

Sustainable Finance Guiding Principles : Principle 3 (page 28, §2) and Principle 4 (page 30, §3)

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(1) - Page 9 - Pilar estrategico #2 - a.

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(1) - Principle 1 - Demonstration progress - p.8

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5 (p9-10)

For all business purpose loan applications subject to this Guideline, the B/FI must ensure that the activity financed is not on the Exclusion List.

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(1) - Principle 1, page 8, §1, page 9 §1

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(2) - page 5 - Monitoreo y Seguimiento de la gestión de la organización

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(1) - Page 9 - Articulo 7°

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(1) - Page 3 - Article 4°

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(1) - 4.2.1, 4.2.2 & 4.2.3

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(2) Sri Lankan Sustainable Banking Principles - Principle 6 - https://sustainablebanking.lk/industry-guiding-principles

Develop and implement a policy framework and procedures that require a screening of clients and engagements for prohibited, excluded or significantly controversial activities, as defined in a jointly agreed upon exclusion list

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(1) - page 7 (1.a 1.)

Sustainability Guidelines for the Banking Sector - page 7 (1.a 1.)

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(1) - page 2 - IV. 2.

Directive on - page 2 - IV. 2.

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(2) - Page 7 - 2. & 3. and Page 18 - F.

Guidelines on E&S Risk Management - Page 7 - 2. & 3. and Page 18 - F.

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(1) - Page 3 - 2.

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(2) - Page 5 - 1.5.

Implementation Guidelines V4 - Page 5 - 1.5.

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(1) - Chapter III, 11 (page 2) (3) - 3.11.1-3.11.5 Categorization and 4.17.1

"Banks shall develop a client E&S risk rating standard to assess and categorize clients’ E&S risks."

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(1) - Strategy n°3 - B)

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(1) - Page 2 - Estrategia 3 b)

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(1) - page 19 - B, and page 20 - Table 5.1

the bank may categorize the credit facility to: 1. the most dominant category of sustainable business activities;

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(1) : Principle 3 - page 28 (§1)

Sustainable Finance Guiding Principles : Principle 3 - page 28 (§1)

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(1) - Page 9 - Pilar estrategico #2 - b.

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(1) - Principle 1 - Implementation - p.7

As part of its sustainable finance policy and procedures, a Bank should develop and implement a policy framework that adequately addresses considerations relating to environmental risk issues and/or negative impacts on the environment potentially associated with its transactions and clients.

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(1) - page 12 (I., §4 "Step 1") & 13 (Banking Sector, §1 & 2)

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7 (p12), 7.3 (p14), 7.3.4 (p18)

The effective implementation of a B/FI’s E&S Policy is ensured through a set of detailed E&S Risk Management Procedures for (…) categorizing transactions based on the loan characteristics (e.g. size, type) or their inherent environmental and social risk [and] rating transactions based on the level of their compliance with E&S requirements and magnitude of E&S problems. Upon completion of the ESDD Checklist an E&S risk rating – ESRR (Low, Medium, High) will be generated automatically by the excel-based ESDD Checklist (in a separate annex to the Guideline).

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(1) - Principle 1, page 10 §1 "Categorisation of potential E&S risks"

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(1) - 3.3.2.2 §1 p10

Environmental Risk Characterization/ Rating Based on the environmental indicators and their interactions identified above, the banks/DFIs may assess the potential impacts and probabilities of their occurrence.The rating assessment matrices similar to the one give below may be employed for risk characterization of an environmental activity.

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(2) - page 5 - 2. Análisis de Riesgos Ambientales y Sociales 3.

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(1) - Page 14 - 9.3.2.

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(1) - Page 5 - Article 8°

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(1) - 4.2.1, 4.2.2 & 4.2.3

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(2) Sri Lankan Sustainable Banking Principles - Principle 1 - https://sustainablebanking.lk/industry-guiding-principles

E&S procedures among others include risk screening, risk categorization into high , medium , low risks and determining required due diligence procedures, related governance provisions and risk monitoring.

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(1) - page 8

Sustainability Guidelines for the Banking Sector - page 8

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(2) - Page 18 - H.

Guidelines on E&S Risk Management - Page 18 - H.

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(2) - Page 27

Implementation Guidelines V4 - Page 27

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(3) - 4.20.1

Only for Energy Efficiency projects KPI 4.20.1 "(2)The loan institution shall carry out onsite inspection on the implementation of environmental and social risk management system and risk response plan of the client at least every half year"

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(2) - p.10; (3) - p.9; (4) - p.9; (5) - p.9

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(1) - Page 17 - 10.2.

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(1) - Page 7 - Article 11°

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(1) - page 8

Sustainability Guidelines for the Banking Sector - page 8

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(1) - Page 5 - 2.6.

Policy Guidelines for Green Banking - Page 5 - 2.6.

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(2) - Page 5 - 1.5.

Implementation Guidelines V4 - Page 5 - 1.5.

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(1) - Chapter III, 11 (page 2) (3) 4.17.5 E&S risk mitigation measures

"Banks shall develop a list of clients with major E&S risks. Such clients shall be requested to develop and implement action plans for major risks involved"

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(1) : Principle 3 - page 28 (§1)

Sustainable Finance Guiding Principles : Principle 3 - page 28 (§1)

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(1) - Principle 1 - Demonstration progress - p.8

In order to demonstrate progress in implementing this principle, a Bank should: • Develop and implement a sustainable finance policy and procedures which provide an overall approach to avoiding, minimising or mitigating damage to the environment that includes:

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7(p11), 7.3.5 (p19)

An ESMS helps a B/FI to (…) require borrowers to implement mitigation measures for identified unacceptable environmental and social risks and/or non-compliance with applicable standards. For MEDIUM and HIGH Risk transactions, there may be identified risks which will have to be mitigated. A corrective action plan can be developed identifying the risk, mitigation measure, timeline for implementation and who should be responsible for implementation.

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(1) - Principle 1, page 10 §2 "Development and customisation of E&S due diligence procedures"

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(1) - 3.3.2.3 b) p12 (1) - 3.3.2.2 §1 p10

"Environmental Improvement Plan (EIP): Depending on the nature of nvironmental risk associated with a client’s operations, the bank/DFI may, as per their discretion, agree with the borrower on a time bound Environmental Improvement Plan (EIP) listing specific actions and measures for implementation by the borrower as pre-conditions for sanctioning or disbursement of financing or within a reasonable period from a predetermined date. The purpose of an EIP is to mitigate potential environmental risk of a transaction so as to bring it to the level acceptable for the financing bank/DFI." "In addition to the above rules and regulations, the Federal and Provincial EPAs have issued Sectoral Guidelines to assist the industry in identifying key environmental issues that need to be assessed as well as mitigation measures and alternatives that should be considered. "

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(2) - page 5 - 2. Análisis de Riesgos Ambientales y Sociales 4.

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(1) - Page 10 - Articulo 7°

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(1) - Page 6 - Article 9° - d) - e) - f)

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(1) - page 8

Sustainability Guidelines for the Banking Sector - page 8

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(2) - Page 18 - G.

Guidelines on E&S Risk Management - Page 18 - G.

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(2) - Page 5 - 1.5.

Implementation Guidelines V4 - Page 5 - 1.5.

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(1) - Chapter IV, 18 (page 3) (3) - 4.18.1 & 4.18.2

"Banks shall improve loan agreements to urge clients to improve E&S risk management. For clients that involve major E&S risks, loan agreements shall request clients to provide E&S risks reports, contain client representations and warranties on improving E&S risk management, design covenants so that clients shall be subject to lender supervision, and provide remedies for banks in case of any breach by client on E&S aspects."

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(2) – Anexo 3

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(1) - Page 10 - Pilar estrategico #2 - d.

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(2) - p.9; (3) - p.9; (4) – p.9; (5) - p.10

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(1) - page 12 (I., §2)

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7.3 (p14), 7.3.3 (p16), 7.3.5 (p19)

For HIGH and MEDIUM Risk transaction, a time bound action plan and relevant covenants, addressing required remedial actions by the client, will have to be included in the loan documentation. The objectives of the E&S due diligence are (…) ensure that the loan documentation includes appropriate definitions, covenants, clauses and associated elements to obligate the client to comply with all E&S laws and regulations and remedy areas of non-compliance. For MEDIUM and HIGH Risk transactions, there may be identified risks which will have to be mitigated. A corrective action plan can be developed identifying the risk, mitigation measure, timeline for implementation and who should be responsible for implementation. Transaction specific corrective action plan and covenants can be part of the loan documents.

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(1) - Principle 1, page 10 §2 "Development and customisation of E&S due diligence procedures"

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(1) - 3.3.2.3 c) p12

Environmental Risk Covenants: A key practice of mitigating the environmental risks is the addition of environmental risk covenants in financing contracts with the borrowers.

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(2) - page 5 - 2. Análisis de Riesgos Ambientales y Sociales 7.

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(1) - Page 17 - 10.2.

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(1) - Page 8 & 9 - Article 17°

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(1) 3.2.2 ESG Risk Management

Incorporate ESG risk management to entire decision-making processes, including environmental and social policies, risk assessment, environmental and social covenant (in loan agreements or other financial legal documents)

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(1) – page 9 (2.)

Sustainability Guidelines for the Banking Sector - page 9

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(2) - Page 18 - H.

Guidelines on E&S Risk Management - Page 18 - H.

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(2) - Art. 6.

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(2) - Page 5 - 1.5.

Implementation Guidelines V4 - Page 5 - 1.5.

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(1) - Chapter IV, 18 (page 3) (3) - Article 20, 4.20.1-4.20.4 Portfolio management and supervision policy

Article 20 Banking institutions shall strengthen post-loan management. As for clients involving potential major environmental and social risks, relevant and pertinent post-loan management actions shall be developed and implemented. They shall watch closely the impact of national policies on the clients’ operation, step up dynamic analysis, and make timely adjustment to asset risk classification, reserve provisioning and loss write-off. They shall establish and improve internal reporting system and accountability system concerning major environmental and social risks faced by the clients. Where major environmental or social risk event occurs to the client, the banking institution concerned shall timely take relevant risk responses and report to competent supervisory authorities on potential impact of said event on itself. "Banks shall improve loan agreements to urge clients to improve E&S risk management. For clients that involve major E&S risks, loan agreements shall request clients to provide E&S risks reports, contain client representations and warranties on improving E&S risk management, design covenants so that clients shall be subject to lender supervision, and provide remedies for banks in case of any breach by client on E&S aspects."

Source Reference
(1) - Strategy n°3 - B)

(2) - Implementacion, monitorea y seguimiento

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(1) : Principle 3 - page 28 (§1)

Sustainable Finance Guiding Principles : Principle 3 - page 28 (§1)

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(1) - Page 10 - Pilar estrategico #2 - c.

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(9) - p.12

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7(p12), 7.3 (p14), 7.3.7 (p19)

The effective implementation of a B/FI’s E&S Policy is ensured through a set of detailed E&S Risk Management Procedures for (…) monitoring the client’s environmental and social performance. Review of the proposed actions (if any) to mitigate potential environmental and social issues associated with the project throughout all phases of the project life cycle. B/FI staff should conduct periodic monitoring and review of the all transactions throughout all phases of the project life cycle to ensure that (i) any required actions to mitigate potential environmental and social issues associated with the project are implemented according to schedule, (ii) and the E&S risk profile of the transaction hasn't increased.

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(1) - Principle 1, page 10 §2 "Development and customisation of E&S due diligence procedures" and §3 "Monitoring E&S risks and reviewing E&S conditions"

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(1) - 3.3.2.3 d) p12

Regular Monitoring and Review: The environmental risk of a borrower may change, after approval or disbursement of financing, due to modifications in business set-ups, operations or production processes or changes in requirements of applicable environmental laws or regulations. The bank/ DFI should agree on regular reviews with the borrower for a reasonable assurance of ongoing compliance with applicable environmental requirements as well managing emerging risks at transaction and portfolio levels.

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(1) - Page 15 - 9.4.1. Customer E&S Report

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(1) - Page 8 - Article 16

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(1) - 4.2.4

"Furthermore, members will develop and implement systems and procedures which identify, measure, and monitor environmental and social risks during the life cycle of project finance agreements and require clients to do the same, subject to legal and regulatory requirements."

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Source Reference
(1) - page 7 and page 8

Sustainability Guidelines for the Banking Sector - page 7 and page 8

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(1) - page 2 - IV. 2. c)

Directive on - page 2 - IV. 2. c)

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(2) - Page 18 - J.

Guidelines on E&S Risk Management - Page 18 - J.

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(1) - Chapter IV, 20 (page 4) (3) 4.20.3 Portfolio E&S analysis and stress testing

"Banks shall strengthen portfolio management. Banks shall develop and implement specific portfolio management measures for clients with major potential E&S risks. "

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7.3.8 (p19), 9 (p20)

B/FIs should aggregate and continuously monitor and manage its E&S risk profile at the portfolio level. B/FIs should aggregate and continuously monitor and manage their E&S risk profile at the portfolio level.

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(1) - Principle 1, page 11&12 4th line of tab Demonstratin Progress "E&S Management System reporting"

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(1) - 3.3.3 §3 p14

On an overall portfolio basis banks/DFIs are obliged to review and classify their existing portfolio to identify their current environmental risk exposure.

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(1) - Page 15 - 9.4.2. Periodic E&S Reports

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(1) - Page 2 - 1.8.

Policy Guidelines for Green Banking - Page 2 - 1.8.

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(2) - Art. 3.

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(2) - Page 7 - 2.5.

Implementation Guidelines V4 - Page 7 - 2.5.

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(1) - Chapter III, 14 (page 3) (3) - 3.14.4 Green credit training

"Banks shall strengthen capacity building on green credit, develop and improve green credit business definition, categorization and statistics, improve relevant credit management system, enhance green credit training, recruit and train specialized staff." KPI 3.14.4; "To strengthen the building of the staff, continuously enhance green credit training, develop and employ related professionals."

Source Reference
(1) - Disclosure - A)

General guidelines for the implementation of E&S risk analysis - page 29 - Plan de formacion y capacitacion

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(1) - Page 3 - TERCERO - Divulgacion - a)

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(3) - page 22

Workshop/training to enhance FSIs competencies to increase financing/investment activities in the sustainable finance priority economic sector;

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(1) : HR Policies - page 32 (§3)

Sustainable Finance Guiding Principles : HR Policies - page 32 (§3)

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(1) - Page 12 - Pilar estrategico #5 - b.

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(1) - Principle 1 - Demonstrating progress - p.8

Dedicated resources and training for relevant Bank staff to create awareness about the potential impacts to the environment and natural resources associated with clients’ activities as well as the potential risk to the bank arising from identified potential impacts.

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(1) - page 18 (Cross-sectoral measures, §2) and 19 (Casablanca Finance City, §1 & 2)

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7.1 (p13), 8 (p20)

The typical E&S policy may include (…) committing to continually building capacity of its staff to manage E&S risks. Tasks should include a review of the E&S regulations of Nepal, communications and training plan for staff, assigning responsibilities to applicable staff, and review of the ESMS on a periodic basis for continuous improvement.

Source Reference
(1) - Principle 1, page 11 §1 "Provision of client engagement guidance on E&S issue"; Principle 7 page 26 §6 " Provide Sustainable Banking training sessions" and §7 " Create practical E&S training tools and resources"

Source Reference
(1) - 2.2 iv p5

Internal Capacity Building: The senior management may regularly review internal capacity and establish capacity building plans to manage the paradigm shift towards green banking.

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(2) - page 5 - 2. Análisis de Riesgos Ambientales y Sociales 8.

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(1) - Page 9 - Articulo 7°

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(1) - 3.5

Source Reference
(2) Sri Lankan Sustainable Banking Principles - Principle 8 - https://sustainablebanking.lk/industry-guiding-principles (1) 3.4.2 Capacity building for financial institutions

Provide “Sustainable Banking Training Sessions” across management levels and operational functions. Create practical E&S training tools and resources

Source Reference
(1) - page 15

Sustainability Guidelines for the Banking Sector - page 15

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(1) - page 1 - II. 2. (2) - page 2 - 2.2. a)

Directive No. 03/CT-NHNN - page 1 - II. 2.; Decision No. 1552QD-NHNN - page 2 - 2.2. a)

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(2) - Plan de formacion y capacitacion

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(1); (2) - Article 7 (2)

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(1) : HR Policies - page 32 (§3)

Sustainable Finance Guiding Principles : HR Policies - page 32 (§3)

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(1) - Principle 8 - Implementation - p.23; Demonstrating progress - p.24; (9) - Policy Implementation/B.Resources and Training - p.12

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(1) - page 15

Sustainability Guidelines for the Banking Sector - page 15

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(1) - Page 19. I.

Policy Guidelines for Green Banking - Page 19. I.

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(2) - page 24 and page 25 - 3) b. and 3) e. 6)

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(1) : Principle 3 - page 29 (§2)

Sustainable Finance Guiding Principles : Principle 3 - page 29 (§2)

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(1) - Principle 6 - Implementation of Principle 6 - p.18

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(1) - Principle 3, page 17 §1 " Integration of human rights due diligence into E&S procedures"

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(1) - page 12

Sustainability Guidelines for the Banking Sector - page 12

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(1) - Page 5 - 3.2.

Policy Guidelines for Green Banking - Page 5 - 3.2.

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(3) - Page 6 - Chapter IX - Article 22

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(2) - Page 26 - Annex 1

Implementation Guidelines V4 - Page 26 - Annex 1

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(1) - Chapter IV, 20 (page 4) (3) 5.24.2-3 Information report for major risk project and stakeholder engagement

"Banks shall develop and improve an internal reporting and accountability system for major client E&S risks. In case of major E&S issues, banks should take measures in a timely manner and report to regulators on potential risks that banks are exposed to. "

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(1) - Disclosure - D)

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(1) - Page 3 - TERCERO - Divulgacion

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(1) Transparency and Marker Discipline - p.10 & 11

Corporate governance codes for commercial banks and capital market set the requirements for ESG reporting and disclosure. The latter is one of the most important tools for driving markets towards more environment-friendly behavior

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(1); (2)

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(1) : Principle 5 - page 31 (§2)

Sustainable Finance Guiding Principles : Principle 5 - page 31 (§2)

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(1) - page 12 - Pilar estrategico #5

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(1) - Principle 7 - Implementation - p.23 (1) - Principle 7 - Demonstrating progress - p.24

As part of its sustainable finance policy and procedures, a Bank will regularly and frequently monitor and measure performance against each of the Principles and will report progress against targets to its relevant internal and external stakeholders. Internal reporting mechanisms on the Principles should be consistent with and be integrated into decision-making processes of the Bank. When implementing this Principle, a Bank should: Report on progress against each one of the Sustainable Finance Principles; In order to demonstrate progress in implementing this principle, a Bank should: Publicly report on progress, successes and relevant dilemmas in implementing the Sustainable Finance Principles, around relevant themes contained in each principle, such as environmental protection, human and labour rights, cultural heritage, supporting green economy growth, financial inclusion, etc. on an annual basis.

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7.3 (p14), 7.3.8 (p19)

B/FIs must establish E&S performance reporting procedures for both internal reporting to senior management and external reporting to NRB, shareholders and stakeholders. The B/FIs will be required to report on their sustainability performance both internally to senior management, and externally to NRB on an annual basis (see Annex 11 for a template for reporting to NRB), and annually to shareholders and stakeholders. A B/FI's ESMS should include periodic reporting on the E&S performance of transactions and measures taken to reduce its overall exposure to E&S risk. B/FIs should aggregate and continuously monitor and manage its E&S risk profile at the portfolio level.

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(1) - Principle 9, page 30 "Implementation of Principle 9" (2) - Question 1.4 Principle 1 (page 4)

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(2) - disclosure -1

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(1) - Page 20 - Articulo 11° - Divulgacion de la informacion

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(1) - Page 9 - Article 18°

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(4) page 41 "Disclosure on Application of King IV"

Answer was "Yes" in the first report, however I do not find clear evidence. "Increase transparency and consistency in the application of environmental and social risk management practices in members own operations, lending practices, investment practices, products and services provided."

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(1) 3.6.3 For financial institutions to measure progress and impacts (1) 3.6.2 For regulators to measure progress and impacts (2) Sri Lankan Sustainable Banking Principles - Principle 10 - https://sustainablebanking.lk/industry-guiding-principles

- Encourage the establishment of monitoring and evaluation mechanism of sustainable finance progress and impacts within financial institutions - Require financial institutions to annually report the progress made on sustainable finance related activities along with an action plan for the next financial year - Establish a “Sustainable Banking Reporting Template” and agree on the frequency, nature and format of internal and external reporting, preferably on an annual basis (potentially in line with Sustainability Report)

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(1) - page 17

Sustainability Guidelines for the Banking Sector - page 17

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(1) - page 3 - IV. 3. & 4.

Directive No. 03/CT-NHNN - page 3 - IV. 3. & 4.

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(1) - Page 7 - 1.

Policy Guidelines for Green Banking - Page 7 - 1.

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(2) & (3)

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(3) - page 22 - A

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(1) - Principle 7 - Implementation - §2 - p.23

A Bank shall seek consistency with international best practice reporting standards such as GRI and other relevant national reporting requirements, as well as the standards outlined in the Sustainable Finance Principles. "When implmeenting this Principle, a Bank should: etc."

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Annex 11 (p56-57)

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(1) - Sector Guidelines (Power, Oil & Gas and Agriculture) (2)

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(1) - 3.3.2.1 §2 p9 (1) - 3.3.2.2 §1 p11

The checklists should reflect the different credit approval levels and standardize due diligence procedures providing uniform results for similar business transactions across the bank/DFI. The terminologies of ‘Extreme’, ‘High’, ‘Medium’ and ‘Low’ should have specific definitions to create a uniform understanding of the rating matrix across the bank/DFI.

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(2)

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(1) - Appendix I page 19

Sustainability Guidelines for the Banking Sector - Appendix I page 19

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(1) - page 3 - IV. 4.

Directive No. 03/CT-NHNN - page 3 - IV. 4.

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