Regulatory Alerts2021-07-18
Circular dated 18 July 2021 on sustainable finance
The proposed action plan for addressing climate change consists of the following steps: 1. Incorporating climate considerations into overall Bank policies and guidelines: * Updating existing policy frameworks to address climate change risks and opportunities. * Adopting new lending policies that take into account climate change-related risks. 2. Strengthening the identification, analysis, and management of climate change-related risks in all aspects of the Bank's activities: * Developing a comprehensive risk assessment framework for assessing and managing climate-related risks across all sectors and regions. * Strengthening the capacities of staff to effectively manage climate-change related risks. 3. Mainstreaming climate change considerations into key operational policies and strategies of the Bank: * Integrating climate change objectives into the Bank's strategic planning process and operational policies. * Implementing a comprehensive approach to integrating climate change considerations into the Bank's investment strategy. 4. Developing a robust framework for assessing and managing the environmental and social risks associated with the Bank's activities: * Conducting an in-depth risk assessment of all existing lending projects financed by the Bank, and developing an action plan to address any identified risks. * Strengthening the Bank's internal governance structures to better manage environmental and social risks. 5. Applying sustainability principles across all activities of the Bank: * Developing guidelines for applying sustainability principles to all aspects of the Bank's operations, including project identification, appraisal, supervision, and exit. * Strengthening the monitoring and evaluation processes to ensure that the Bank is effectively managing environmental and social risks. 6. Scaling up climate finance: * Developing a comprehensive framework for scaling up climate finance, including setting targets and establishing mechanisms to track progress. * Strengthening collaboration with other multilateral development banks and international organizations to mobilize additional funding for climate-related projects. 7. Encouraging private sector investment in climate change mitigation and adaptation: * Developing a comprehensive strategy for encouraging private sector investment in climate change mitigation and adaptation, including setting targets and establishing mechanisms to track progress. * Strengthening the Bank's capacity to provide advisory services and technical assistance to support private sector investment in climate-related projects. 8. Promoting innovative technologies and business models for addressing climate change: * Developing a comprehensive strategy for promoting innovative technologies and business models for addressing climate change. In summary, the proposed action plan addresses key aspects of climate change, including mainstreaming climate considerations across all sectors and regions. The plan calls for strengthening the Bank's risk management framework, scaling up finance for climate-related projects, encouraging private sector investment in climate mitigation and adaptation, and promoting innovative technologies and business models for addressing climate change.