Moving Forward with Environmental and Social Risk Mmanagement : Findings from IFC Country Baseline Surveys
Financial institutions (FIs) face a number of risks related to the activities of their clients. The impact of climate change, resource scarcity, environmental pollution and social issues such as involuntary resettlement are just some of the factors...
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| Format: | Report |
| Language: | English en_US |
| Published: |
Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2014/02/24160890/moving-forward-environmental-social-risk-management-findings-ifc-country-baseline-surveys http://hdl.handle.net/10986/21719 |
| Summary: | Financial institutions (FIs) face a
number of risks related to the activities of their clients.
The impact of climate change, resource scarcity,
environmental pollution and social issues such as
involuntary resettlement are just some of the factors that
might increase the risk incurred by FIs extending credit to
clients. The potential impact can be substantial: FIs may
face increased credit risk, reputational risk, or liability
risk. In this context, IFC has observed a growing interest
in Environmental and Social Risk Management (ESRM) from the
financial sector in emerging markets. Furthermore, FIs are
increasingly aware of the opportunities of environmentally
and socially sustainable banking. To provide an overview of
the current state of ESRM, IFC has conducted a series of
baseline surveys in Africa, Asia and Latin America. This
paper provides a summary of the main findings of these
market surveys and insights into the current practices of
ESRM in emerging markets. In this paper, the scope of the
baseline surveys will be presented, followed by a detailed
analysis of the survey results and a summary of the main
survey findings. The last section of the paper provides an
overview of current ESRM guidance1 in the survey countries. |
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