Circular Letter No. 01/2025 – Angolan Financial System Sustainability Principles: Implementation Guide for Principle I on Promotion of Training and Knowledge

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CARTA – CIRCULAR LETTER NO. 01/2025
ASSUNTO: FINANCIAL SYSTEM
− Angolan Financial System Sustainability Principles − Implementation Guide for the Principle of Promotion of Training and Knowledge Considering the need to guide Financial Institutions in gradually implementing the Angolan Financial System Sustainability Principles, approved by the Supervisory Council of the Angolan Financial System (CSSF); For the purpose of disseminating the Implementation Guide for Principle I – Promotion of Training and Knowledge, this Circular Letter serves to guide the following:

1. The Guide applies to Financial Institutions under the supervision of the Banco Nacional de Angola, as stipulated in paragraphs 2 and 3 of Article 7.º of Law No. 14/21, dated May 19, 2021 (General Regime Law for Financial Institutions), hereinafter referred to as "Institutions".
2. The “Implementation Guide for Principle I – Promotion of Training and Knowledge”, hereinafter abbreviated as the “Guide”, attached to this Circular Letter and forming an integral part thereof, recommends the following:
   a) Institutions must define critical functions to incorporate sustainability criteria and standards into their activities, in order to implement the principle of promoting training and development; b) In defining these functions, Institutions must assess the responsibilities of support, internal control, and business functions;

CONTINUATION OF CIRCULAR LETTER NO. 01/2025 page 2 of 5 c) The Administrative/Management Body of Institutions is responsible for approving and monitoring the training strategy within Sustainability, which must be aligned with the objectives and targets set by the Institution.
3. Institutions must collaborate with each other, as well as engage relevant third parties such as the government, clients, development agencies, industry associations, non-governmental organizations, external experts, academics, and others, in order to develop sector-wide capacities and competencies.
4. This Circular Letter enters into force on the date of its publication.
Luanda, March 13, 2025.
DEPARTMENT OF REGULATION AND ORGANIZATION OF THE FINANCIAL SYSTEM ______________________________ Cândido Abrantes Pina -Director-

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ANNEX I
IMPLEMENTATION GUIDE FOR PRINCIPLE I – PROMOTION OF TRAINING AND KNOWLEDGE

1. KEY ELEMENTS FOR THE PROMOTION OF TRAINING AND KNOWLEDGE
   1.1. To implement the principle of promoting training and knowledge, it is recommended that Institutions implement initiatives aimed at strengthening their competencies to effectively fulfill their sustainability-related responsibilities.
   1.2. For the purposes of the aforementioned provision, Institutions must consider the following key elements:
   a) Establish clear training objectives regarding sustainability, which must be aligned with the Institution's sustainability strategy; b) Training initiatives must be specific and adapted to the needs, responsibilities, objectives, and functions of the Institution, as well as its employees; c) Allocation of adequate and sufficient resources to meet sustainability training needs; d) Sustainability training initiatives must be continuous and integrated into the Institution's regular training cycles; e) The Institution must promote an internal culture that values sustainable and socially responsible practices, through the regular dissemination of sustainability content to its employees via internal communications, newsletters, and/or lectures, ensuring that sustainability is viewed as an integral part of the Institution's mission and objectives; f) The Institution should prioritize obtaining relevant certifications such as the Sustainable Finance Certification or climate risk management courses, so that it can lead its initiatives and serve as a reference for other areas.

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2. METHODOLOGY
To define a sustainability training program, Institutions may consider an approach divided into four phases, namely:
a) Mapping of training needs; b) Design of the training strategy; c) Identification of training providers; and, d) Communication.

3. COMPETENCY PROFILE
   3.1. In the development and implementation of periodic sustainability training programs, employees in critical functions must be capable of:
   a) Understanding fact-based scientific evidence on climate change and other planetary challenges that contribute to economic growth, financial and social risks, namely, knowing the sources and impacts of rising greenhouse gas levels, nature degradation, and the underlying role of human behavior, as well as social aspects; b) Understanding biodiversity and nature-related losses or damages, as well as how they can affect the economy and financial system, i.e., understanding concepts related to nature loss or damage, including biodiversity threats and how they may manifest as financial risks (physical and transition risks) that could generate adverse implications for economic and financial stability; c) Understanding how climate change can affect the economy and financial system, i.e., knowing the specifics of climate-related risks (physical and transition risks), and their impacts on the Institution; d) Understanding the current international architecture for addressing climate change and nature-related losses and damages, as well as how measures taken by authorities in various jurisdictions fit into broader sustainability frameworks; e) Understanding the main concepts of sustainable finance and investments, in order to identify sustainable financing opportunities, sustainable products, and investment strategies that may be available to provide the necessary capital to support the transition to a low-carbon economy; f) Understanding how Financial Institutions can conduct socio-environmental risk scenario analyses, namely, knowing the existing tools for socio-environmental scenario analysis provided by organizations, as well as comparing their approaches, assumptions, and limitations; g) Understanding the transition plans approach and its relevance to institutions, considering governance, business strategy, and risk management; h) Understanding the concept of carbon footprint, its calculation process, and associated methodologies, in order to identify the Financial Institution's activities that directly or indirectly contribute to total greenhouse gas (GHG) emissions.

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