India Country Progress Report April 2022 SUPPLEMENT TO THE 2021 GLOBAL PROGRESS REPORT OF THE SUSTAINABLE BANKING AND FINANCE NETWORK Acknowledgements This Country Progress Report was developed by the SBFN Secretariat under the leadership of the SBFN Measurement Working Group and with guidance from the SBFN India Country Coordinator, Afifa Raihana and Asia Regional Coordinator, Wei Yuan. Data are provided by the Indian Banks’ Association (IBA) and verified by SBFN. The team is grateful for the support of Roshika K. Singh, Rajesh Kumar Miglani, and Anjali Garg from IFC, and India Banks’ Association (IBA) representatives who reviewed and provided comments to this report, in particular Swati Datta, manager of IBA. About SBFN About IFC Established in 2012, SBFN is a voluntary community of IFC—a member of the World Bank Group—is the largest financial sector regulators and industry associations from global development institution focused on the private emerging markets committed to collectively advancing sector in emerging markets. IFC works in more than 100 sustainable finance in line with international good practice countries, using its capital, expertise, and influence to and national priorities. As of October 2021, SBFN members create markets and opportunities in developing countries. represented 63 institutions, 43 countries, and $43 trillion In fiscal year 2021, IFC committed a record $31.5 billion to (86 percent) of the total banking assets in emerging markets. private companies and financial institutions in developing Members are committed to i) improving the management of countries, leveraging the power of the private sector to environmental, social, governance, and climate change risks end extreme poverty and boost shared prosperity as in financial sector activities, and ii) increasing capital flows economies grapple with the impacts of the COVID-19 to activities with positive environmental and social impacts, pandemic. For more information, visit www.ifc.org. including climate change mitigation and adaptation. 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Additionally, “International Finance Corporation” and “IFC” are registered trademarks of IFC and are protected under international law. Contents 1 2 Overall country progress – India Progress by three pillars 1. SBFN member institutions Pillar 1: ESG Integration 2. Other key institutions and Pillar 2: Climate Risk Management national initiatives promoting Pillar 3: Financing Sustainability sustainable finance 3. Overall progress page 6 4. Country sustainable finance journey 5. COVID response 6. Ambitions for the next phase 7. SBFN and IFC role page 2 3 4 Progress by three sub-pillars & Library of national 11 indicators sustainable finance framework documents Sub-pillar 1: Strategic Alignment Sub-pillar 2: Regulatory and Industry National strategies, roadmaps, Association Actions policies, voluntary principles, regulations, guidelines, research, Sub-pillar 3: Expectations of Financial templates, and tools that provide Institution Actions an enabling framework for page 11 sustainable finance page 12 5 SBFN measurement framework and methodology Summary of the SBFN measurement framework, a systematic approach to benchmark country progress in developing national enabling frameworks for sustainable finance page 13 Note to the reader: All measurement results featured in this document, such as graphs and progression matrixes, are based on data collected up to July 2021. Additional activities up to the publishing date of this country report have been included in narrative form. 1 1. Overall country progress – India 1.1 SBFN member institution: Indian Banks’ Association (IBA) Member Since: 2016 1.2 Other key institutions and national initiatives promoting sustainable finance Inter-Ministerial Task Force on Sustainable Finance Department of Economic Affairs (Department of Economic Affairs, Ministry of Finance, Ministry of Finance Government of India) The Climate Policy Initiative Ministry of Corporate Affairs BSE Limited Securities and Exchange Board of India (SEBI) Reserve Bank of India Insurance Regulatory and Development Authority (IRDA) Pension Fund Regulatory and Development Authority (PFRDA) 1.3 Overall progress India has moved up to the “Developing” sub-stage of the “Implementation” stage from the “Formulating” sub-stage of the “Preparation” stage on the overall SBFN Progression Matrix. India has formally launched its sustainable finance framework, including national roadmap, framework, policy, voluntary industry principles, or guidance. The Securities and Exchange Board of India (SEBI) has provided disclosure requirements in their Business Responsibility and Sustainability Reporting Framework (BRSR) applicable to the top 1,000 listed entities by market capitalization. The reporting is voluntary for the financial year 2021-22 and mandatory from the financial year 2022-23. The Department of Economic Affairs has formed the Task Force on Sustainable Finance with representation from various ministries and regulators to promote sustainable financing in India. In April 2021, the Reserve Bank of India joined the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). 2 Figure 1: SBFN Progression Matrix - Overall country progress Overall Results (without movements) Maturing Implementation Mainstreaming Preparation Consolidating Behavioral Changes Developing Advancing Commitment Formulating China Argentina Bangladesh Colombia Cambodia Brazil Kazakhstan Indonesia Chile Costa Rica Georgia Lao PDR Fiji Dominican Kenya Maldives Jordan Republic Mexico Samoa Kyrgyz Ecuador Republlic Mongolia Serbia Egypt Morocco Tunisia Ghana Nigeria Honduras South India Africa Iraq Turkey Nepal Vietnam Pakistan Panama Paraguay Peru Philippines Sri Lanka Thailand Ukraine *Countries within each sub-stage are listed in alphabetical order. 1.4 Country sustainable finance journey Figure 2: India’s sustainable finance journey Research and engagement Examples of Policies, principles, regulations, (since last SBFN progress market actions and guidance. report) and impacts 2011 2016 2017 Ministry of Corporate Indian Banks’ Stewardship Code for Insurers is launched Affairs issues the National Association joins by the Insurance Regulatory and Voluntary Guidelines on SBFN Development Authority Social, Environmental and 5 Economic Responsibilities The Securities and Exchange Board of of Business India (SEBI) issue Disclosure Requirements for Issuance and Listing of Green Debt Securities IBA issues the National Voluntary Guidelines for Responsible Financing 3 2020 2019 2018 Department of Economic Affairs, The Ministry of Corporate Affairs Pension Fund Regulatory and Ministry of Finance, and the issues the National Guidelines for Development Authority adopts the United Nations Development Responsible Business Conduct, Stewardship Code Program engage in a public- updated from National Voluntary private sustainable finance Guidelines (2011) Bombay Stock Exchange (Now collaboration, including a three- BSE Limited) issues the Guidance day consultation to mobilize SEBI adopts the Stewardship Document on ESG Disclosures sustainable and green finance Code The Climate Policy Initiative, The India-UK Sustainable Finance in collaboration with Shakti Working Group is established Sustainable Energy Foundation and cKinetics, releases Accelerating Green Financing Definitions: Definitions and Beyond SEBI issues the Business Responsibility and Sustainability Reporting Framework As of December 2020, green bonds to the cumulative total value of $11.8 billion have been issued by Indian institutions 2021 India-UK Sustainable Finance Working Group releases Practical Actions to Finance India’s Sustainable Recovery, a report detailing actionable steps to finance India’s sustainable recovery from the COVID-19 pandemic The Reserve Bank of India joins Network of Central Banks and Supervisors for Greening the Financial System( NGFS) SEBI issues Circular on Business Responsibility and Sustainability Reporting by Listed Entities 4 1.5 COVID response In response to the COVID-19 pandemic, the Employees’ Provident Fund Organization now provides benefits to new employees of registered organizations, including subsidy support from Employees’ Provident Fund contributions. The Pension Fund Regulator and Development Authority (PFRDA) allowed partial withdrawals from the National Pension System for treatment of COVID-19 for members and families. Relief measures were announced by the Reserve Bank of India (RBI) in March 2020, including reduction of policy repo rate by 75 basis points. RBI also announced auctions of Targeted Long- term Repo Operations of up to three years for a total amount of up to $26 billion (at a floating rate linked to policy repo rate), with 50 percent for corporates, 25 percent for development institutions for agriculture, housing, and small and medium enterprises (SMEs), and 25 percent for non-banking financial companies and microfinance institutions.  1.6 Ambitions for the next phase A Task Force on Sustainable Finance was launched in 2020 by the Department of Economic Affairs as a follow-up to the Sustainable Finance Collaborative. This task force has members from several ministries and various regulators. Going forward, it aims to develop a Roadmap on Sustainable Finance, a strategic framework which lays out a number of key recommendations needed to grow sustainable finance in India, along with a clear timeline for implementation. Some of the core focus areas include developing a draft taxonomy of sustainable activities, formulating recommendations to enhance the resilience of the financial system to climate and environmental and social (E&S) risks, strengthening sustainability disclosures, and enhancing the flow of capital towards sustainable development. It will also look into any other matters pertinent to the promotion of sustainable financing in India. To support this effort, multiple technical working groups have been constituted. 1.7 SBFN and IFC role IFC has supported the Indian Banks’ Association in their sustainable finance initiatives and capacity building. Through SBFN, IBA has shared its experience with other SBFN members and benefited from the collective SBFN knowledge base. IFC has conducted training sessions on sustainable finance for IBA members and selected bank staff and Reserve Bank of India (RBI) officials. Under the Task Force on Sustainable Finance, IFC is a co-leader of the sub-group on Building Climate & ESG Resilience in the Financial Sector, and is also a member of the sub-group Sustainable Finance Regulations, which is co-chaired by the RBI and SEBI. This transition towards a more sustainable economic model to meet citizens’ aspirations and international commitments requires large-scale investments in sustainable businesses. Hence, the financial system will play a significant role in the structural transformation of the economy. Working Group on Domestic and Global Best Practices on Sustainable Finance, Indian Banks’ Association (IBA) 5 2. Progress by three pillars Figure 3: Mapping of overall country progress and individual pillar progress Overall mapping Maturing Implementation Preparation Consolidating Mainstreaming Behavioral Changes Developing Advancing Commitment Formulating Pillar-level mapping Pillar 2: Pillar 1: Pillar 3: Climate Risk ESG Financing Management Integration Sustainability 1. Progress by 3 Pillars Pillar 1: Pillar ESG Integration 1: ESG Integration Pillar Progress: Developing India is mapped under the “Developing” sub-stage of the “Implementation” stage for the ESG Integration Pillar. There is an existing national framework addressing the integration of ESG risk and performance considerations into the practices of financial institutions (FIs). There are ongoing activities to raise awareness and build capacity, and early-stage implementation is in progress. Strategic Alignment India South Asia SBFN Average Expectations of Financial Regulatory and Industry Institution (FI) Actions Association Actions Sub-pillar 1: Strategic Alignment • India’s approach to ESG integration in the financial • India’s national frameworks for the banking sector and sector is aligned with international good practices and nonbanking sector, including the National Voluntary standards. Guidelines for Responsible Financing (IBA, 2017) and • The framework (National Voluntary Guidelines for the Business Responsibility and Sustainability Reporting Responsible Financing) was developed and implemented by Listed Entities (SEBI, 2021), set out expectations in close consultation with stakeholders. The formulation for integrating the consideration of ESG risks process of the Guidelines started with the working and performance. group convened by the IBA. The working group brought 6 together a cross-section of public and private sector listed entities. Filing of BRSR will be mandatory for the banks, think tanks and implementing agencies. top 1,000 listed companies by market capitalization. The reporting requirements were finalized based on feedback Sub-pillar 2: Regulator and Industry Association Actions received from public consultation. A benchmarking • India’s sustainable finance framework is supported with exercise with internationally accepted frameworks was implementation guidance and technical tools in the also undertaken. National Voluntary Guidelines on Responsible Financing. The Guidelines state the responsible financing strategy Sub-pillar 3: Expectations for FI Actions is built on the five pillars of leadership, materiality, • The National Voluntary Guidelines for Responsible integration, engagement, disclosure, and reporting. Financing requires FIs to develop policies and • The implementation of the framework is regularly procedures to manage ESG risks and performance, monitored by IBA, supported by its data collection undertake regular review and monitoring of ESG risks, approach. Disclosure follows the principle of ‘apply or and report ESG performance both to the regulator explain’. The intent is that FIs review how they perform on and publicly. each principle, and state reasons and plans on how they want to improve their performance going forward. • In May 2021, SEBI issued a circular on Business Responsibility and Sustainability Reporting (BRSR) by top 7 Pillar 2: Climate Risk Management Pillar Progress: Formulating India is in the “Formulating” sub-stage of the “Preparation” stage of the Climate Risk Management Pillar. The Ministry of Corporate Pillar Affairs has2: NationalRisk Climate issued Management Guidelines on Responsible Business Conduct, which reference climate change and include disclosure to align with the SEBI Circular on Business Responsibility and Sustainability Reporting by Listed Entities, which includes elements of climate risk. The IBA issued National Voluntary Guidelines for Responsible Financing, which reference climate and include guidelines on financing for climate mitigation and adaptation. The Guidelines also provide a foundation for the future incorporation of approaches to manage climate-related physical and transition risks and financial impacts. Preparations and activities include research, surveys, and/or multi-stakeholder engagement and awareness raising on expectations for climate risk management. Strategic Alignment India South Asia SBFN Average Expectations of Financial Regulatory and Industry Institution (FI) Actions Association Actions Sub-pillar 1: Strategic Alignment Financing are directed at FIs and reference climate • Addressing climate change risks is a national priority, as change in the introductory message; they include ESG indicated in India’s Nationally Determined Contribution risk management (principle two), and financing for (NDC) to the Paris Agreement and national climate climate mitigation and adaptation (principle four). policies, including the National Action Plan on Climate • In terms of raising awareness of climate risks, the RBI Change. In the financial sector, the Ministry of Corporate is a member of the Network of Central Banks and Affairs, SEBI, and the IBA have issued guidelines for the Supervisors for Greening the Financial System (NGFS) management and disclosure of environmental, climate, and the National Stock Exchange of India Ltd. supports and social risk in the banking and capital markets sector. TCFD. The RBI’s annual report in 2020 acknowledged the significance of climate risks and the need for a Sub-pillar 2: Regulatory and Industry Association Actions framework to assess and manage climate related risk, • The National Guidelines on Responsible Business building on a discussion of climate risk and disclosure Conduct (NGRBC, 2019) apply to all corporate entities trends including TCFD in the context of green finance and reference climate change mitigation, adaptation, in RBI’s 2018-2019 Report on Trends and Progress of and building climate resilience in line with India’s NDC Banking. as part of NGRBC’s principle six on respecting and • In April 2020, RBI issued a bulletin referencing the study, restoring the environment. Annual reporting under the Climate Change: Macroeconomic Impact and Policy NGRBC is intended to align with the Circular on Business Options for Mitigating Risks, which highlights the rising Responsibility and Sustainability Reporting by Listed risks from climate change for the macroeconomic outlook Entities (SEBI, 2021), which includes reference to climate of economies around the world, and also reviews the risk, scope one, two, and three greenhouse gas emissions available risk-mitigating policy options. An analysis of (Annex Two, BRSR Reporting Format), and notes that major weather-related events in India since 1901 shows BSRS reporting can be cross-referenced to other that the incidence of extreme events has increased in the sustainability reporting (including frameworks such as last two decades, with rising average temperature levels the Global Reporting Initiative, the Task Force on Climate- and more volatile precipitation patterns. related Financial Disclosures (TCFD), and the • As part of India’s future progress, recommended • Sustainability Accounting Standards Board. areas of focus for regulatory and industry association • The IBA’s National Voluntary Guidelines for Responsible actions include research, capacity building, technical 8 2 guidance (such as climate scenarios or risk assessment financial sector regarding climate risks. methodologies), and development of regulatory and • As part of future progress, the National Guidelines on supervisory expectations for FIs for managing climate- Responsible Business Conduct, the SEBI’s sustainability related physical and transition risks and financial impacts. disclosure approach for listed entities, and the IBA’s National Voluntary Guidelines for Responsible Financing Sub-pillar 3: Expectations for FI Actions can be further elaborated to guide the expected actions • Application of the National Guidelines on Responsible of FIs for the development of their strategy, governance, Business Conduct, and the SEBI sustainability disclosure risk management, metrics/targets and disclosure approach for listed entities serves to build familiarity, approaches for climate-related physical and transition capacity, and awareness among the Indian corporate and risks and financial impacts. 9 Pillar 3: Financing Sustainability Pillar Progress: Developing Pillar 3: Financing Sustainability India is in the “Developing” sub-stage of the “Implementation” stage of progression for the Financing Sustainability Pillar. There is a national framework for promoting financial flows into green, climate, social, and sustainability-linked projects and sectors, and ongoing awareness raising and capacity building on financing sustainability actions and expectations. Strategic Alignment India South Asia SBFN Average Expectations of Financial Regulatory and Industry Institution (FI) Actions Association Actions Sub-pillar 1: Strategic Alignment third-party reviewer/certifier”. • India’s national framework for financing sustainability • As part of its Voluntary Guidelines, IBA will measure and covers both the banking sector and the capital monitor FIs’ progress in managing ESG issues, both for markets, led by IBA’s National Voluntary Guidelines for risk and opportunities, and proactively and regularly Responsible Financing (2017) and SEBI’s Disclosure disclose this information publicly via relevant disclosure Requirements for Issuance and Listing of Green Debt or reporting frameworks. Securities (2017). SEBI has also prepared draft Disclosure Requirements for Issuance and Listing of Green Bonds, Sub-pillar 3: Expectations for FI Actions which are currently pending board approval. • IBA’s Voluntary Guidelines asks FIs’ boards to integrate • The Indian financial sector’s approach to promoting an ESG oversight function in an appropriate sub- financial flow into green and sustainability projects and committee, or to create a new committee as deemed fit sectors is in alignment with international goals and good for mainstreaming these principles in FIs’ operations and practices, such as the UN Sustainable Development for their subsequent monitoring and review, both for risk Goals and the Climate Bonds Initiative definitions. and opportunities. • India’s framework on financing sustainability promotes • The Voluntary Guidelines asks FIs to define internal staff cooperation between key stakeholders. The formulation roles and responsibilities and to develop and maintain process of IBA’s Guidelines began in the working group internal staff-related capacity through regular training convened by IBA, which brought together a cross- and learning necessary to promote sustainable finance. section of public and private sector banks, think tanks, • The Voluntary Guidelines asks FIs to publish annual and implementing agencies. updates on the performance and impacts of the sustainability instruments, and to report to the IBA and Sub-pillar 2: Regulatory and Industry Association Actions the general public on green, social, and/or sustainability • SEBI issued its Disclosure Requirements for Issuance and bonds or other positive impact investments, including Listing of Green Debt Securities in 2017, which provides lines of credit and investment in clean technology, energy definitions for green debt securities and guidelines for efficiency, renewable energy, and climate mitigation and issuers of green debt securities, usually green bonds. It adaptation projects. also states that “the issuer may appoint an independent For details for each pillar, sub-pillar, indicator, datapoint, and referring policy document, please visit the SBN Online Analytical Tool at [URL TBD]. 10 3 2. Progress by 3 Sub-Pillars and 11 Indicators 3. Progress by three sub-pillars & 11 indicators Figure4: Figure 1: Overview ofIndia’s Overviewof India’ssustainable financecoverage sustainablefinance coveragein inthree threeframework areas thematic areas Pillar 1: Pillar 2: Pillar 3: ESG Integration Climate Risk Management Financing Sustainability Sub-pillar 1: Strategic Alignment National Framework Coverage Alignment with International Goals & Standards Alignment with National Goals & Strategies Sub-pillar 2: Regulatory and Industry Association Actions Overall Approach & Strategy Technical Guidance Supervisory Activities & Incentives Tracking & Aggregated Disclosure Sub-pillar 3: Expectations of Financial Institution (FI) Actions Strategy & Governance Organizational Structure & Capacity Building Policies & Procedures Tracking, Reporting & Disclosure All data in the report are pending member confirmation. 4 11 4. Library of national sustainable finance framework documents National strategies, roadmaps, policies, voluntary principles, regulations, guidelines, research, templates, and tools that provide an enabling framework for sustainable finance Circular on Business Responsibility Practical Actions to Finance India’s and Sustainability Reporting by Listed Sustainable Recovery Entities (India-UK Sustainable Finance (SEBI, 2021) Working Group, 2021) Accelerating Green Finance in India: Business Responsibility Definitions and Beyond and Sustainability Reporting Framework (The Climate Policy Initiative, Shakti Sustainable Energy Foundation (SEBI, 2020) and Kinetics, 2020) National Guidelines Stewardship Code Stewardship Code for Responsible (SEBI, 2019) (Pension Fund Regulatory Business Conduct and Development (Ministry of Corporate Authority, 2018) Affairs, 2019) Guidance Document National Voluntary Disclosure on ESG Disclosures Guidelines on Requirements for (BSE Limited, 2018) Responsible Financing Issuance and Listing (Indian Bank’s Association, Green Debt Securities 2017) (SEBI, 2017) Stewardship Code National Voluntary Guidelines on (Insurance Regulatory Social, Environmental and and Development Economic Responsibilities of Authority, 2017) Business (Ministry of Corporate Affairs, 2011) Download framework documents and check for updates at www.sbfnetwork.org/library 12 5. SBFN measurement framework and methodology About SBFN An evolving framework Established in 2012, the Sustainable Banking and Finance The SBFN Measurement Framework reflects the activities, Network (SBFN) is a unique, voluntary community strategies, and tools that members use to promote of financial sector regulatory agencies and industry sustainable finance in their countries. It evolves to match associations from emerging markets committed to advances in country initiatives. It also incorporates the latest advancing sustainable finance in line with international international standards and best practices identified by best practice. SBFN is facilitated by IFC as secretariat, and members as important to their efforts. supported by the World Bank Group. A member-led approach As of October 2021, SBFN comprised 43 member countries The Framework was designed with extensive member input representing over US$43 trillion and 86 percent of total under the leadership of the Measurement Working Group banking assets in emerging markets. Members are and Co-Chairs. Updates to the Framework are guided by committed to collectively driving measurable change. the Measurement Working Group and agreed by all SBFN Members. Why a measurement framework? In 2016, members requested a systematic comparison of Data collection in partnership with members country approaches to developing national sustainable As of 2021, data collection for the SBFN Global Progress finance frameworks. The SBFN Measurement Working Report relies on member country reporting in line with the Group was established to convene member inputs on the updated Measurement Framework. Information is supported design of a common framework to benchmark country by evidence, which is verified by the SBFN secretariat in progress and accelerate peer-to-peer knowledge exchange. collaboration with third-party service providers. Evaluation The Framework is designed to inform the biennial SBFN and milestones are objective and transparent. Members Global Progress Report. approve the final Global and Country Progress Reports. The Framework can be used as: The Measurement Framework is based on three intersecting themes in sustainable finance. For each a mapping tool to capture the dynamic theme, it assesses regulatory guidance, supervision interaction of collective insights, market- strategies, disclosure requirements, and voluntary based actions, and policy leadership industry approaches. demonstrated by SBFN members as they move their financial markets ESG Integration refers to the management of toward sustainability; environmental, social, and governance (ESG) risks in the governance, operations, lending, and investment a benchmarking tool for SBFN activities of financial institutions. members to learn from and compare peer approaches, track and review Climate Risk Management refers to new governance, progress against global benchmarks, risk management, and disclosure practices that financial develop common concepts and institutions can use to mitigate and adapt to climate change. definitions, and leverage innovations and strengths; and Financing Sustainability refers to initiatives by regulators and financial institutions to unlock capital flows a forward planning and capacity for activities that support climate, green economy, and building tool to identify future policy social goals. This includes new products like green bonds pathways and capacity building needs. and sustainability-linked loans. Initiatives include definitions, guidance, taxonomies, monitoring, and incentives. 13 1 The Measurement Framework consists of three complementary components: 1. Progression matrices The stage mapping is based on qualitative milestones and Drawing on SBFN members’ common development paths quantitative analysis related to (i) progress in developing and milestones, the SBFN Progression Matrix provides and implementing national policies and principles, and (ii) an overview of market-wide progress for all SBFN countries industry uptake and practices. In the 2021 report, in addition across three typical stages of development. It allows each to the Overall Progression Matrix, three pillar-level matrices SBFN member to review its own progress and identify the are added to reflect a country’s development process in strengths and weaknesses of its approach. each of the pillar areas. Overall Mapping Country Maturing Implementation Preparation Consolidating Mainstreaming Behavioral Changes Developing Advancing Commitment Formulating Pillar-Level Mapping Pillar 2: Pillar 3: Pillar 1: Climate Risk Financing ESG Management Sustainability Integration 2. Pillar benchmarking A dynamic assessment is conducted Pillar 1: Pillar 2: Pillar 3: Climate Risk Financing across several priority pillars of sustainable ESG Integration Management Sustainability finance, using qualitative and quantitative • National framework datapoints to assess progress and allow Sub-pillar 1: • Alignment with international goals and standards comparison across countries. Three pillars, Strategic Alignment • Alignment with national goals and strategies three cross-cutting sub-pillars, 11 cross- Sub-pillar 2: Regulatory • Overall approach and strategy cutting indicators, and 75 underlying • Technical guidance and Industry Association • Supervisory activities and incentives datapoints are used to objectively assess a Actions • Tracking and aggregated disclosure country’s sustainable finance framework(s), Sub-pillar 3: • Strategy and governance according to clarity, depth, and alignment • Organizational structure and capacity Expectations of Financial • Policies and procedures to international good practice. Institution (FI) Actions • Tracking, reporting, and disclosure 3. Sector data and case studies In 2021, data collection included an exploratory request for quantitative data points — where available — for the number and percentage of financial institutions that are implementing ESG integration as well as climate risk management and disclosure; and the total value of green, social, and sustainability bond issuance. Detailed case studies were also collected of innovative approaches by regulators and industry. Case studies will be published in a new on-line case study catalogue. SBFN on-line case study catalogue Coming soon 2 14 SBFN Measurement Framework pillars, sub-pillars, indicators, and underlying datapoints Pillar 1: ESG Integration Sub- Indicator No. Underlying datapoint pillar National framework1 1 Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for (e.g. policies, roadmaps, integrating the consideration of environmental, social, and governance (ESG) risks and performance? guidance, regulations, 2 Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance or other non-lending FIs voluntary principles, that sets out expectations for integrating the consideration of ESG risks and performance? Strategic Alignment templates, or tools) Alignment with 3 Does the Framework make reference to international sustainable development frameworks or goals? international goals and standards 4 Does the Framework make reference to established international ESG risk management standards and principles for FIs? Alignment with national 5 Does the Framework make reference to specific national development objectives, plans, policies, goals, or targets? goals and strategies 6 Does any cooperation exist between agencies or between the regulator and industry association with respect to policy design and/or implementation related to ESG integration? 7 Does any inter-agency data sharing currently exist related to ESG integration by FIs? Overall approach and 8 Does the Framework provide guidance on the role of the regulator or industry association with regard to assessing and managing ESG risk Regulatory and Industry Association Actions strategy and performance in the financial sector? 9 Has the regulator or industry association undertaken market assessment to identify systemic ESG risks through analysis of the portfolios of supervised entities/members and published the results? Technical guidance 10 Does the Framework provide technical guidance or tools to support implementation of ESG risk and performance management by the financial sector? Supervision activities 11 Is the implementation of the Framework regularly monitored and/or information regularly collected from FIs by the regulator and/or industry and incentives association? 12 Does the regulator or industry association provide any financial or non-financial incentives for FIs to manage ESG performance as part of the Framework? 13 Does the regulator or industry association apply any disincentives/penalties for non-compliance by FIs in terms of expectations from the regulator and/or industry association related to ESG risk management as part of the Framework? Tracking and 14 Has the regulator or industry association established a data collection approach and database to track or regularly publish data related to aggregated disclosure ESG integration by FIs as part of the Framework? Strategy and 15 Does the Framework require/ask the FI’s board of directors (or highest governing body) to approve an ESRM and/or ESG integration strategy, governance and to supervise its implementation? Organizational structure 16 Does the Framework require/ask FIs to allocate resources/budget commensurate with portfolio ESG risks and define roles and and capacity responsibilities for ESG integration within the organization? 17 Does the Framework require/ask FIs to develop and maintain the ESG expertise and capacity of staff commensurate with portfolio ESG risks Expectations of FI Actions through regular training and learning? 18 Does the Framework require/ask FIs to create incentives for managers to reduce the ESG risk-level of the portfolio over a specified timeframe? Policies and procedures 19 Does the Framework require/ask FIs to develop policies and procedures to identify, classify, measure, monitor, and manage ESG risks and performance throughout the financing cycle at the client level and/or the transaction/project level? 20 Does the Framework require/ask FIs to undertake a regular review and monitoring of ESG risk exposure at aggregate portfolio level? 21 Does the Framework require/ask FIs to establish and maintain an external inquiry/complaints/grievance mechanism for interested and affected stakeholders in relation to ESG practices? Tracking, reporting, and 22 Does the Framework require/ask FIs to report ESG risks and performance to the regulator or industry association? disclosure 23 Does the Framework require/ask FIs to report on ESG integration publicly? 24 Does the Framework require/ask FIs to track credit risk (e.g. loan defaults) and/or financial returns in relation to ESG risk level? Pillar 2: Climate Risk Management National framework 25 Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy? 26 Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance, or other non-lending FIs that sets out expectations for integrating the consideration and management of climate risks and their impact in the national economy? Strategic Alignment Alignment with 27 Does the Framework make reference to international agreements or frameworks to address climate? international goals and 28 Does the Framework recognize or align with established regional or international good practice for climate risk management and disclosure standards by FIs? Alignment with national 29 Has the regulator or industry association aligned the Framework with national goals to address climate change in line with the country’s goals and strategies Nationally Determined Contributions (NDCs) to the Paris Agreement? 30 Does any cooperation exist between agencies, or between government and industry association, with respect to policy design or implementation related to climate risk management? 31 Does any inter-agency data sharing currently exist related to climate risk management by FIs? 1 National framework refers to the collective set of policies, roadmaps, guidance, regulations, and/or voluntary principles issued by national regulators or industry associations in relation to each pillar of sustainable finance. SBFN recognizes that national frameworks for sustainable finance vary from country to country and are influenced by national priorities and characteristics. They are also often interdependent with other national roadmaps, policies, and regulations. Countries vary in their starting points and the types of documents to kickstart the enabling framework. For instance, initial frameworks could choose to focus on ESG risk management and/or sustainable finance opportunities such as green bonds. They could also focus on banking, capital markets, or institutional investors. The variety of SBFN frameworks provides a rich source of inspiration for peer learning and collaboration. 15 3 Overall approach and 32 Has the regulator or industry association undertaken research on historical impacts to the economy and financial sector from climate strategy change, and/or future expected impacts resulting from physical and transition climate risks? Regulatory and Industry Association Actions 33 Does the Framework identify key sources of GHG emissions – such as in particular sectors – as priorities in the proactive management of climate risks by the financial sector? 34 Does the Framework incorporate the conservation/restoration of natural carbon sinks (such as oceans, forests, mangroves, grasslands, and soils) as an important part of reducing climate change risks (e.g., through guidelines, scenario analysis, targets, or incentives for FIs)? 35 Has the regulator or industry association developed an internal strategy to address climate risk, and/or embedded climate risk management into its governance, organizational structures, and budget as part of the Framework? 36 Has the regulator or industry association undertaken any activities to expand and deepen analytical understanding of national and/or cross- border physical and transition climate risks, and to raise awareness as to how these risks may transmit to, and impact, the financial sector? Technical guidance 37 Has the regulator or industry association developed risk assessment approaches, methodologies, or tools to understand and assess the financial sector’s exposure to climate risk as part of the Framework? Regulatory and Industry Supervisory activities 38 As part of the Framework, has the regulator clarified supervisory expectations with regard to climate risk management by FIs, including Association Actions and incentives consideration of international good practices? 39 Has the regulator started to explicitly embed climate-related risk in supervisory activities and review processes as part of the Framework? 40 Is the implementation of the Framework regularly monitored and/or information regularly collected from FIs by the regulator and/or industry association? 41 Are there any financial or non-financial incentives to encourage FIs to establish climate risk management systems? Tracking and aggregated 42 Does the regulator or industry association regularly collect and/or report market-level and/or FI-level data on climate-related financial sector disclosure risks as part of the Framework? Strategy and governance 43 Does the Framework require/ask FIs to establish a strategy for climate risk management with responsibility at the board of director level (or highest governing body)? Organizational structure 44 Does the Framework require/ask FIs to define the roles and responsibilities and related capacities of the FI’s senior management and and capacity operational staff in identifying, assessing, and managing climate-related financial risks and opportunities? Expectations of FI Actions Policies and procedures 45 Does the Framework require/ask FIs to expand existing risk management processes to identify, measure, monitor, and manage/mitigate financial risks from climate change? Tracking, reporting, and 46 Does the Framework require/ask FIs to report on their overall approaches to climate risk management in line with international good disclosure practices (e.g. TCFD), or establish a timeline by which FIs should begin to align their reporting with such practices? 47 Does the Framework require/ask FIs to identify, measure, and report on exposure to sectors which are vulnerable to transition risk and physical risk? 48 Does the Framework require/ask FIs to adopt and report on performance targets to reduce portfolio greenhouse gas (GHG) emissions on a regular basis? 49 Does the Framework require/ask FIs to adopt and report on performance targets to reduce exposure to climate change risks at the portfolio level on a regular basis? Pillar 3: Financing Sustainability National framework 50 Has the regulator or industry association published a national framework (“Framework”) for the banking sector that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy? 51 Has the relevant regulator or industry association published a Framework for capital markets, investment, insurance, or other non-lending FIs that sets out expectations for integrating the consideration of instruments, goals, and standards for financing sustainability, including requirements for ensuring credibility and managing and measuring resulting impacts in the national economy? Strategic Alignment Alignment with 52 Has the regulator or industry association developed a strategy, regulations, or set of frameworks for stimulating the allocation of capital to international goals and sustainable assets, projects, and related sectors in line with global goals, such as the Sustainable Development Goals (SDGs)? standards 53 Does the Framework recognize and/or align with existing standards, voluntary principles, or market good practices related to sustainable finance instruments? Alignment with national 54 Does the Framework enable the achievement of stated national objectives by guiding capital to sectors, assets, and projects that have goals and strategies environmental and social benefits in line with national sustainable development priorities, strategies, targets, and the size of sustainable investment needs, and taking into account the local barriers to scaling-up sustainable finance? 55 Does any cooperation exist between agencies or between the regulator and industry association with respect to policy design or implementation related to sustainable finance flows? 56 Does any inter-agency data sharing currently exist related to stimulating and monitoring sustainable finance flows? Overall approach and 57 Does the Framework require/ask the regulator or industry association to establish mechanisms to identify and encourage the allocation of Regulatory and Industry Association strategy capital to sustainable sectors, assets, and projects? Technical guidance 58 Does the Framework provide definitions, examples, and/or a taxonomy (catalogue and guidelines) of sustainable finance assets? 59 Does the Framework provide guidelines for extending green, social, or sustainability-focused loans (excluding bonds)? 60 Does the Framework provide guidelines for issuance of green, social, or sustainability bonds? Actions 61 Does the Framework require/ask for external party verification to ensure the credibility of sustainability instruments? Supervisory activities 62 Does the regulator or industry association monitor information reported by FIs related to green/social/sustainability investment, lending, and and incentives other instruments to prevent greenwashing and social-washing? 63 Are there any financial or non-financial incentives for FIs to develop and grow green, social, or sustainability finance instruments? Tracking and aggregated 64 Does the regulator or industry association collect and/or publish data from FIs or other sources about allocation of capital to green/social/ disclosure sustainability assets, projects, or sectors? 16 4 Strategy and governance 65 Does the Framework require/ask FIs to establish a strategy, governance, or high-level targets, including at the Board of Directors level, for capital allocation to sustainable assets, projects, or sectors? Organizational structure 66 Does the Framework require/ask FIs to define internal staff roles and responsibilities to encourage finance flows to green, social, and/or and capacity building sustainability-focused investments? 67 Does the Framework require/ask FIs to develop and maintain internal staff capacity on green, social, or sustainability products through regular training and learning? Policies and procedures 68 Does the Framework require/ask FIs to put in place policies and procedures for defining, issuing, managing proceeds, tracking performance, Expectations of FI Actions and reporting on green, social or sustainability-focused products? 69 Does the Framework require/ask FIs to appoint an independent external reviewer to confirm that the FI’s internal framework meets the requirements of the recognized national framework and regulations, or aligns to international standards? 70 Does the Framework require/ask that FIs create incentives for managers to increase sustainable loans or investments in the portfolio? Tracking, reporting, and 71 Does the Framework require/ask FIs to publish annual updates on the performance and impacts of the sustainability instruments in disclosure compliance with relevant national and/or international standards? 72 Does the Framework require/ask FIs to obtain and disclose independent review of metrics reported annually in relation to the social and environmental outcomes and impacts achieved through the sustainability instruments? 73 Does the Framework require/ask FIs to report to the regulator(s) or industry association(s) on allocation and/or outcomes of green, social, and/or sustainability loans? 74 Does the Framework require/ask FIs to report to the regulator(s) or industry association(s) on green, social, and/or sustainability bonds or other positive impact investments? 75 Does the Framework require/ask FIs to report publicly on their green, social, and sustainability-focused finance activities and positive outcomes or impacts (i.e. not only to the regulator or shareholders)? 5 17 Figure 1: Overall Progression Matrix Milestones Figure 1: Overall Progression Matrix Milestones Figure 5: Overall Progression Matrix Milestones Maturing Maturing Implementation Implementation Mainstreaming Preparation Consolidating Mainstreaming Preparation Consolidating Behavioral Changes Developing Advancing Behavioral Changes Developing Advancing Commitment Formulating Commitment Formulating A comprehensive set There is an established A comprehensive of national Sustainable set There is an of ecosystem established A first national Implementation tools of national Sustainable ecosystem of The financial sector A formal initiative A first national Implementation tools Finance initiatives and Sustainable Finance The financial sector A formal roadmap, framework, and initiatives are regulator or industry — led by initiative a financial roadmap, framework, and initiatives are are in and Finance initiatives frameworks Sustainable initiatives andFinance regulator orhasindustry — led by a financial policy, regulation, in place, such as frameworks in parts areall initiatives and association sector regulator or policy, regulation, in place, such as place, covering frameworks that align association a announced has formal sector regulator industry or or or set of voluntary association guidance, guidelines, place, all parts coveringsystem. frameworks that align voluntary on or set of principles industry guidance,templates, reporting guidelines, of the financial and integrate with each announced ato commitment formal industry both in progressor industry principles on — isassociation of the financial system. and integrate with each Sustainable Finance reporting training, templates, online tools, other. commitment to achieve progress on both — is in progress to develop a national The national other. Sustainable has Finance been formally training, and online tools, supervisory The nationalare aligned achieve progress Sustainable on Finance to develop roadmap, a national framework, frameworks Financial institutions are has been launched. formally and supervisory instructions. frameworks are aligned Financialor institutions are Sustainable in the next twoFinance years. roadmap, policy, framework, or voluntary with international good required encouraged launched. instructions. with international in the next two years. policy, orprinciples industry voluntaryon A formal taskforce The national practice across allgood three required to report or encouraged publicly on Initial steps have industry principles on A formal taskforce The nationalFinance practice pillars of across all three Sustainable to report their publicly on implementation Initial taken, steps have Sustainable Finance. or dedicated unit is Sustainable been such as Sustainable Finance. or dedicated unit is Sustainable Finance pillars Finance. of Sustainable their of implementation Sustainable Finance been taken, such as leading implementation framework covers Finance. of Sustainable a kick-off meeting or Preparations include leading efforts — implementation either within framework multiple partscovers of the across risk andFinance a kick-off meeting workshop with keyor Preparations research, suveys, include efforts — either Consistent and across risk and workshop with key research, suveys, the regulator or within multiple parts financial system. of the Consistent and comparable data is opportunity. opportunity. stakeholders and multi-stakeholder the regulator or financial system. stakeholders and multi-stakeholder industry association, or comparable being data collected by isthe The regulator or industry. engagement, and/or industry association, or Financial institutions industry. engagement, and/or as a multi-stakeholder Financial regulator as part of the being collected by The regulator or awareness raising for as a multi-stakeholder working group or report on institutions their regulator as— part of the industry industry association association awareness the financial raising sector.for report on their of the supervision or by has multi-year data working group or platform. implementation supervision — or by the has multi-year databy the financial sector. implementation of the industry association, on implementation platform. roadmap, framework, industry association, The Sustainable roadmap, policy, framework, or voluntary about implementation on financial institutionsby implementation The Sustainable policy, or voluntary about implementation by financial institutions. financial — includinginstitutions both risk Finance initiative is principles in line with by financial institutions. — including risk bothData Finance initiative acknowledged or is principles in consistent line with reporting and opportunity. acknowledged or consistent reporting and opportunity. includes information Data supported by both instructions or includes information supported and regulators by both industry. instructions templates or provided on the benefits of regulators and industry. templates provided on the benefits Sustainable Finance.of by the financial sector Sustainable Finance. Awareness raising and by the financial regulator sector or industry Awareness capacity raising building and have regulator or industry capacity building have association. been conducted. association. been conducted. Figure 6: Progression Matrix Milestones – Pillar 1: ESG Integration Figure 2: Progression Matrix Milestones – Pillar 1: ESG Integration Figure 2: Progression Matrix Milestones – Pillar 1: ESG Integration Maturing Maturing Implementation Implementation Mainstreaming Preparation Consolidating Mainstreaming Preparation Consolidating Behavioral Changes Developing Advancing Behavioral Changes Developing Advancing Commitment Formulating Commitment Formulating A comprehensive The national A comprehensive The national ESG frameworks for A first national Implementation tools national initiative or set national initiative or ESG frameworks foraligned The financial The financial A formal initiative is in A formal initiative is in A first national policy, regulation, Implementation and initiatives are tools of frameworks are inset Integration are sector regulator or progress to develop policy, regulation, and initiatives are of frameworks are in Integration are aligned with international good sector regulator or progress to develop guidelines, or set of in place, such as place that promote ESG industry association a policy, regulation, guidelines, or set of in place, such as place that promote ESG with international practice and national good industry association a policy, regulation, voluntary principles guidance, guidelines, Integration across all parts has announced guidelines, or voluntary voluntary principles guidelines, guidance,templates, Integration across all parts practice andand regulations; national has announced guidelines, orESG voluntary has been formally reporting of the financial system. a commitment to principles on has been formally reporting templates, of the financial system. regulations; and are consistent across a commitment to principles on launched that sets training, online tools, develop a policy, Integration forESG the launched that sets training, online tools, The national frameworks are consistent different parts ofacross the develop a policy, Integration for the out requirements and supervisory The national frameworks regulation, guidelines, financial sector. out requirements and supervisory cover all three cross- different parts financial of the sector.  regulation, guidelines, financial sector. or recommendations instructions. cover all three cross- or voluntary or recommendations instructions. cutting areas of ESG financial sector.  or voluntary Preparations for financial cutting areas of ESG principles for the Preparations for financialon ESG The ESG Integration Integration: Local financial principles for the include research, institutions The ESG Integration Integration: Local financial financial sector include research, institutions on ESG expectations cover 1. strategic alignment, institutions financial sector surveys, multi- Integration. expectations 1. strategic alignment, institutions that on integrating the surveys, multi- Integration. multiple partscover of the 2. regulatory regulatory 2. industry and and demonstrate demonstrate that on integratingof management the stakeholder multiple parts of the association they have embedded stakeholder A formal taskforce, financial system. management of engagement, and/ taskforce, A formal group, financial system. industry association they the have embedded requirements for environmental, social, engagement, and/ working or actions, and environmental, social, or awareness raising working group, or Financial institutions actions, and of the requirements ESG Integration and for and governance or awareness raising institution is tasked 3. expectations Financialon institutions ESG Integration and governance (ESG) risks and for the financial sector. institution is tasked for the financial sector. with implementation report their expectations 3. financial of institution are reporting on and their (ESG) risks and with implementation report on their of implementation financial institution are reporting on their performance (ESG and/or supervision actions. efforts. performance (ESG and/or supervision implementation ESG Integration in of actions. efforts. Integration). and is supported Integration). and is supported ESGwith line Integration consistentin Consistent and Extensive data by regulators and line with consistent Consistent and Extensive dataavailable A first event or by regulators and reporting instructions comparable data are are becoming A first event orbeen industry.  reporting instructions comparable data are are becoming available workshop has industry.  or templates provided becoming available on on trends among workshop has been or templates provided becoming available on on trends financial among institutions held to engage Activities include by the financial sector trends in the practices held to engage Activities include by the financial sector trends in the practices in financial institutions regarding practices in relevant financial awareness raising regulator or industry of financial institutions relevant financial awareness raising regulator or industry of financial institutions in regarding ESG practices Integration and in sector stakeholders and capacity association. relation to ESG Integration sector stakeholders and capacity association. relation to ESG Integration ESG the Integration resulting and benefits. on the topic of ESG building for financial and the resulting benefits. on the topic ofthe ESG building foron financial and the resulting benefits. the resulting benefits. Integration for institutions the Integration financial for the sector. institutions on the for new expectations 18 financial sector. expectations for new Integration. ESG 6 ESG Integration. 6 Figure 3: Progression Matrix Milestones – Pillar 2: Climate Risk Management Figure 3: Progression Matrix Milestones – Pillar 2: Climate Risk Management Figure 7: Progression Matrix Milestones – Pillar 2: Climate Risk Management Maturing Maturing Implementation Implementation Mainstreaming Preparation Consolidating Mainstreaming Preparation Consolidating Behavioral Changes Developing Advancing Behavioral Changes Developing Advancing Commitment Formulating Commitment Formulating A comprehensive The national frameworks A comprehensive national initiative or The national for Climate frameworks Risk A national policy, Implementation tools national initiative or for Climate Risk The financial A formal initiative A national policy, Implementation tools set of frameworks Management are aligned The financial A regulation, guidelines, or and initiatives are in sector regulator or is formal initiative in progress to regulation, guidelines, or and initiatives in frameworks set of Management are aligned sector regulator or is in progress to set of voluntary industry place, such as are in guidance, are are place aimed at in placeallaimed with international good industry industry association association develop develop or refine refine orpolicy, set of voluntary principles is in placeindustry that place, such as guidance, guidelines, reporting supporting partsat of with international practice expectations good and has announced a national principles is in place that guidelines, reporting supporting the financial all parts of system to practice expectations national climate change and has announcedto a national policy, includes requirements templates, training, a commitment a commitment to regulation, regulation, guidelines, guidelines, includes requirements and/or recommendations templates, online tools, training, and manage climate risk.to the financial system national climate commitments; and are change develop a policy, or voluntary industry and/or recommendations online and tools, instructions manage climate risk. commitments; consistent across and are different develop a policy, for the financial sector supervisory regulation, or principles onindustry or voluntary Climate for the financial sector supervisory instructions The national frameworks consistent parts of the across financialdifferent regulation, or principles on Climate to manage climate to help the financial The cover national all threeframeworks cross- parts of the financial voluntary principles Risk Management to manage climate to the financial helpmanage sector. voluntary principles Risk Management risk — either as part of sector climate- cover all cutting three areas ofcross- Climate sector. on Climate Risk for the financial risk on Climate Risk for the —financial ESG— either as part Integration or asofa relatedmanage sector physicalclimate- and cutting areas of Climate Risk Management: Local financial institutions Management for the sector either as ESG Integration or as a related Management for the sector standalone framework. physical transition risks. and Risk Management: Local financial institutions financial sector. — part of aneither as existing standalone framework. transition risks. 1. strategic alignment, demonstrate that they financial sector. part of an existing 2. strategic 1. regulatory alignment, and demonstrate have embedded thatthe they ESG framework or A formal taskforce, Financial Institutions Initial awareness ESG framework or A formal group, taskforce, regulatory 2. industry and have embedded for the Initial awareness as a standalone working or report on Institutions Financial their industry association association requirements requirements climate for climate raising and as a standalone framework. working group, or the report on their actions, and risk management and are raising and sharing institution is taking approach to Climate knowledge knowledge sharing framework. institution lead is taking the with implementation approach Risk to Climate Management in 3. actions, and of expectations risk management on their and reporting are efforts. is being organized Preparations include lead with implementation Risk Management in 3. expectations of financial institution reporting on their efforts. is and/or supervision, and is line with consistent bybeing organized the regulator or Preparations research, surveys, include and/or supervision, and is line with consistent financial institution actions. Extensive data are by the regulator or research, surveys, supported by regulators reporting instructions actions. 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Figure 4: Progression Matrix Milestones – Pillar 3: Financing Sustainability Figure 8: Progression 4: Progression Matrix Matrix Milestones Milestones – Pillar – Pillar 3: Financing 3: Financing Sustainability Sustainability Maturing Maturing Implementation Implementation Mainstreaming Preparation Consolidating Mainstreaming Preparation Consolidating Behavioral Changes Developing Advancing Behavioral Changes Developing Advancing Commitment Formulating Commitment Formulating A comprehensive The national frameworks A comprehensive national initiative or The national frameworks for Financing A national framework Implementation tools national initiative or for Financing are aligned The financial sector A formal initiative A national set of frameworks Sustainability The financial sector A formal initiative is in place framework that Implementation and initiatives are tools set of frameworks Sustainability are aligned regulator or industry is in progress is in place that and initiatives are are in place aimed at with international good regulator or has industry includes regulations in place, such as association made to in is progress develop a includes regulations in place, such as are in placeall supporting aimed partsatof with international practice expectationsgood association has made to develop a or guidance for the guidance,guidelines, supporting all parts of practice expectations a public commitment policy, regulation, or guidance for to the guidance,guidelines, the financial system and national sustainable a public commitment policy, regulation, financial sector taxonomies, the financial system and national sustainable to develop a policy, guidelines, or financial sector to taxonomies, to promote financial development plans; and a policy, to develop guidelines, guidelines, or promote financial reporting templates, to promote financial development regulation, voluntary principles promote financial reporting templates, flows to green, social, or are consistentplans; acrossand regulation, guidelines, voluntary principles flows to green, social, training, online tools, flows to green, social, or are consistent across or voluntary principles to promote financial flows to green, social, training, online tools, sustainability-focused different parts of the or principles voluntaryfinancial to promote financial or sustainability- and supervisory sustainability-focused different to promote flows to green, social, or sustainability- and supervisory projects and sectors. financial parts sector.of the to promote financial flows to green, social, focused projects and instructions to help projects and sectors. financial sector. flows to green or or sustainability- focused projects and instructions flows to green or or sustainability- sectors. the financialto help sector The national Local financial institutions sustainability-focused focused projects and sectors. the financial sector The nationalcover all Local financial institutions sustainability-focused promote financial flows projects and sectors. focused sectors. projects and A taskforce, working frameworks demonstrate that projects and sectors. sectors. 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Sustainability in industry. Sustainability in 3. actions, and of FI expectations are reporting publicly. performance their line with consistent 3. expectations of FI performance publicly. Activities include line with consistent actions. Activities include reporting instructions actions. Extensive data are awareness raising reporting instructions awareness raising or templates provided Consistent and becoming data Extensive are on available and capacity or by templates the financialprovided sector Consistent and becoming available on and capacity comparable data are trends among financial building for financial by the regulatorfinancial or sector industry comparable data are trends among financial building for financial becoming available institutions regarding institutions on the regulator or industry association. becoming available institutions regarding institutions on the on trends in the Financing Sustainability new expectations association. on trends of the in financial Financing Sustainability new expectations practices and the resulting benefits. for Financing practices of financial and the resulting benefits. for Financing institutions in Financing Sustainability. institutions in Financing Sustainability. 19 Sustainability and the Sustainability resulting benefits.and the 7 resulting benefits. 7 ACCESS THE SBFN GLOBAL AND COUNTRY PROGRESS REPORTS AT: WWW.SBFNETWORK.ORG