Peru is one of the 34 countries that have initiated banking reforms to expand sustainable lending, making emerging markets a major force in driving development and fighting climate change, an International Finance Corporation's (IFC) report revealed.
It must be noted Latin America represents about one-third of SBN members; that is, 11 out of 34 nations.
Membership in SBN promotes learning from peers and accelerated adoption of sustainable
finance-policies.
For instance, Mexico and Peru have learned from the experience of Brazil and Colombia and are quickly developing their own sustainable finance initiatives.
Within this context, Peru's Superintendency of Banking, Insurance and Private Pension Fund Administrators (SBS) developed the Regulation for Social and Environmental Risk Management in 2015.
This document outlines minimum environmental and social risk assessment requirements for all financial institutions in the Andean country.
SBS also issued a document titled Role of Enhanced Due Diligence in the Regulation of Socio-environmental Risk Management for Financial Firms, which clearly defines the scope of projects for which minimum E&S risk management requirements have to be implemented.
About
The
IFC —a sister organization of the World Bank and World Bank Group member— is the largest global development institution focused on the private sector in developing countries.
The
Sustainable Banking Network (SBN) is a unique community of financial sector regulatory agencies and banking associations —from emerging markets— committed to advancing sustainable finance in line with international good practices.
Thus, IFC acts as the Secretariat of the Network, playing the role of facilitator and technical adviser to SBN.
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