Mongolian banks have set an example for sector-led reforms in adopting sustainable finance principles, according to the first comprehensive Global Progress Report of the Sustainable Banking Network (SBN), an IFC-supported organization of banking regulators and associations.
The report points out that emerging markets have become a major force in driving development and fighting climate change as 34 countries have initiated banking reforms to expand sustainable lending. These countries account for USD 42.6 trillion in bank assets, more than 85 percent of total bank assets in emerging markets.
According to SBN, Mongolia was included as one of the eight countries to reach an advanced stage, having implemented large-scale reforms and put in place systems for results measurement.
“This progress is an important step toward achieving the Sustainable Development Goals by 2030,” said Ethiopis Tafara, IFC’s Vice President for Legal, Compliance Risk and Sustainability.
The report provides practical indicators and tools for countries to apply their own domestic markets, regardless of their size or stage of development.
Notably, while committing to these principles is voluntary, all 15 banks in Mongolia have chosen to apply them. The Principles are accompanied by guidance notes on implementation, which include references to relevant international standards and good practice. The MBA has developed specific guidelines for four key sectors (agriculture, construction, manufacturing, and mining) to help assess potential environmental and social risks and opportunities in these sectors. The report suggests that more detailed operational guidance, specifically regarding ongoing monitoring and reporting, could be developed and applied to all sectors of the economy. The Principles could also be expanded to other financial activities, such as insurance or asset management.
“The Mongolian Sustainable Finance Initiative has demonstrated a successful sector-led model with effective stakeholder engagements in both the private and public sectors. We are committed to working with all international and Mongolian partners to further advance Mongolia’s national sustainable finance agenda,” remarked Tuyen D. Nguyen, IFC Resident Representative for mongolia.
Mongolian banks have set an example for sector-led reforms in adopting sustainable finance principles, according to the first comprehensive Global Progress Report of the Sustainable Banking Network (SBN), an IFC-supported organization of banking regulators and associations.
The report points out that emerging markets have become a major force in driving development and fighting climate change as 34 countries have initiated banking reforms to expand sustainable lending. These countries account for USD 42.6 trillion in bank assets, more than 85 percent of total bank assets in emerging markets.
According to SBN, Mongolia was included as one of the eight countries to reach an advanced stage, having implemented large-scale reforms and put in place systems for results measurement.
“This progress is an important step toward achieving the Sustainable Development Goals by 2030,” said Ethiopis Tafara, IFC’s Vice President for Legal, Compliance Risk and Sustainability.
The report provides practical indicators and tools for countries to apply their own domestic markets, regardless of their size or stage of development.
Notably, while committing to these principles is voluntary, all 15 banks in Mongolia have chosen to apply them. The Principles are accompanied by guidance notes on implementation, which include references to relevant international standards and good practice. The MBA has developed specific guidelines for four key sectors (agriculture, construction, manufacturing, and mining) to help assess potential environmental and social risks and opportunities in these sectors. The report suggests that more detailed operational guidance, specifically regarding ongoing monitoring and reporting, could be developed and applied to all sectors of the economy. The Principles could also be expanded to other financial activities, such as insurance or asset management.
“The Mongolian Sustainable Finance Initiative has demonstrated a successful sector-led model with effective stakeholder engagements in both the private and public sectors. We are committed to working with all international and Mongolian partners to further advance Mongolia’s national sustainable finance agenda,” remarked Tuyen D. Nguyen, IFC Resident Representative for mongolia.