Ecuador 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 Latin America and the Caribbean Regional Coordinator, Marcela Ponce. Data are collected and verified by SBFN. The team is grateful for the support and guidance of the Central Bank of Ecuador (BCE) and Banking Association of Ecuador (ASOBANCA) representatives who reviewed and provided comments to this report, in particular Guillermo Avellan Solines, BCE General Manager; Pablo Eduardo Grijalva Bautista, BCE Operations Deputy Manager; Francisco Miguel Encalada Lopez, from BCE; Veronica Artola Jarrin, former BCE General Manager; Fernando Rafael Jurado Grijalva, former employee from BCE; Roberto Romero, ASOBANCA Communication and Public Affairs Director; Daniel V. Ortega-Pacheco, Director of Center for Public Policy Development at ESPOL Polytechnic University and Coordinator of the Ecuador Sustainable Finance Initiative. 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 countries, using its capital, expertise, and influence to practice and national priorities. As of October 2021, SBFN create markets and opportunities in developing countries. members represented 63 institutions, 43 countries, and In fiscal year 2021, IFC committed a record $31.5 billion to $43 trillion (86 percent) of the total banking assets in private companies and financial institutions in developing emerging markets. 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All names, logos and trademarks are the property of IFC and you may not use any of such materials for any purpose without the express written consent of IFC. Additionally, “International Finance Corporation” and “IFC” are registered trademarks of IFC and are protected under international law. Contents 1 2 Overall country progress – Ecuador 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 5 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 and 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 10 sustainable finance page 11 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 12 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 – Ecuador 1.1 SBFN member institutions: Banking Association of Ecuador (Asociación de Bancos del Ecuador - (ASOBANCA) Member Since: 2016 Central Bank of Ecuador (BCE) Member Since: 2021 1.2 Other key institutions and national initiatives promoting sustainable finance Quito Stock Exchange Superintendency of Companies, Securities and Insurance 1.3 Overall progress Ecuador has continued to make progress in the “Developing” sub-stage of the “Implementation” stage. In 2021, ASOBANCA published 12 sector guides at the Sustainable Banking Protocol issuance fifth-anniversary event and announced 22 more sector guides to be developed in 2022, covering all productive sectors in the economy. In 2020, the Quito Stock Exchange issued the Guide for Green and Social Bonds, advancing the development of sustainable finance in the capital markets. Ecuador has formally launched its sustainable finance framework, starting with the Sustainable Banking Protocol for Ecuador issued by ASOBANCA in 2016. A formal initiative is in place, which is supported by both regulators and industry. Awareness raising and capacity building have been conducted. 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. 2 1.4 Country sustainable finance journey Figure 2: Ecuador’s sustainable finance journey Research and engagement Policies, principles, regulations, Transactions & (since last SBFN progress and guidance Impact report) 2016- 2019- 2018 2020 ASOBANCA joins SBFN Nine Ecuadorian banks sign the UNEP FIs Responsible Banking Principles ASOBANCA issues the The first green bond issued by an Ecuadorian bank in the country ($150 Sustainable Banking million) Protocol for Ecuador The Quito Stock Exchange issues the Guide for Green and Social Bonds for ASOBANCA establishes Ecuador the Sustainable Finance Committee to foster The Sustainable Finance Initiative is launched, promoting the National Pact industry actions towards for Sustainable Finance in Ecuador sustainability As of December 2020, the cumulative green bond issuance reaches $150 Environmental and Social million and green credit reaches $200 million Management System training deployed among The first social bond ($20 million) was issued in Ecuador several banks, with many training opportunities Several banks raise $560 million, supported by DFC, BID Invest, IFC, FMO repeated each year to keep towards sustainability efforts raising the bar 2022 2021 ASOBANCA develops a web Central Bank of Ecuador (BCE) joins SBFN portal for banks to enter their information regarding policies, ASOBANCA publish 12 Sector Guides to enhance banks’ environmental and social practices, programs, and other (E&S) risks and mitigation strategies financial data, and the system will rank them based on their In November, ASOBANCA and its member banks celebrate the 5th anniversary of sustainability finance maturity, ASOBANCA’s Sustainable Banking Protocol, which was signed on November 2016. The compared with local banks and banks signed a document renewing their commitment to sustainable finance. soon with regional banks Ecuadorian banks raise $322 million from BID Invest, DFC and FinDev Canada, for The first sustainable ($50 million) sustainability efforts and the first gender bonds ($100 million) are issued in Ecuador Total green credit reaches $312 million 3 1.5 COVID response Ecuador established a state of emergency in response to the COVID-19 pandemic. Several direct and indirect tax measures were introduced, including payment deferrals, rate reductions, and a suspension of tax audits. Economic stimulus measures were introduced including loans and a moratorium on debt repayments. Permission was granted to suspend or reduce working days. A loan suspension or extension was granted to the Superintendence of Companies and the courts, and a suspension of payments was granted for mining conservation patents. 1.6 Ambitions for the next phase BCE and ASOBANCA have recognized that sustainable finance is vital for Ecuador and are committed to developing and implementing a national sustainable finance framework in the near term, with a focus on sustainable finance sensitization, capacity building, and stakeholder awareness raising, participation, and consultation. ASOBANCA, with support from BID Invest & FMO, started the development of another 22 sector guides, with 34 sector guides (12 in 2020- 2021 and 22 in 2021-2022) covering all productive sectors in the economy. 1.7 SBFN and IFC role IFC has provided support to the financial sector for sustainable finance initiatives and capacity building in Ecuador, in partnership with the Facility for Investment Climate Advisory Services. Through SBFN, ASOBANCA and the Central Bank of Ecuador have shared their experience with other SBFN members and benefited from the collective SBFN knowledge base. “ “ Since ASOBANCA’s Sustainable Banking Protocol was signed in 2016, banks have been working with a clear strategy to promote The Central Bank of Ecuador is sustainable finance in the country. This has committed to contributing to the allowed the implementation of initiatives that development of public policies, in set a precedent in the country, such as the collaboration with the private and issuance of the first green bond, the first social public sectors, in order to promote bond, the first sustainable bond, and more sustainable finance that ensures “ recently, the first gender bond. The sector’s social welfare and environmentally efforts have also facilitated several banks friendly growth. to receive resources from international and multilateral organizations to promote credit Guillermo Avellán Solines for sustainable projects. In addition, Ecuador’s General Manager of the Central Bank of Ecuador private banks have demonstrated their commitment to responsible banking and ratified “ it supporting Ecuadorians to deal with impacts of COVID-19 since 2020. Dr. Marco Rodriguez Executive President of Asobanca 4 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 5 1. Progress by 3 Pillars Pillar 1: ESG Integration Pillar Pillar 1: ESG Integration Progress: Developing Ecuador 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 environmental, social, and governance (ESG) risk and performance considerations into the practices of financial institutions. There are ongoing activities to raise awareness and build capacity, and early-stage implementation is in progress. Strategic Alignment Ecuador Latin America SBFN Average Expectations of Financial Regulatory and Industry Institution (FI) Actions Association Actions Sub-pillar 1: Strategic Alignment IFC’s Green Bond Technical Assistance Program and • Ecuador’s national framework for the banking sector, Green Banking Academy. IFC support has increased including the Sustainable Banking Protocol for knowledge and dissemination. In particular, the financial Ecuador (ASOBANCA, 2016), sets out expectations and technical support in designing, implementing, and for integrating the consideration of ESG risks communicating successful implementation, provided by and performance. the first Green, Social, and Sustainability Bond Executive • The framework was developed and/or implemented Training and targeted at the major private banks in in close consultation with stakeholders. The Protocol Ecuador, was crucial. This support has allowed banks involves cross agency collaboration between financial to produce high-quality public goods (such as case supervisors or regulators, industry associations, and studies and videos) that will be accessible to stakeholder financial institutions (FIs). groups and may contribute to enlarging the IFC support’s impact. Sub-pillar 2: Regulatory and Industry Association Actions • In 2021, ASOBANCA published 12 Sector Guides to • The implementation of the framework is regularly Enhance Banks’ Environmental and Social (E&S) Risks monitored by ASOBANCA. and Mitigation Strategies, with support from eco.business • In August 2020, Ecuador launched the Sustainable Fund and focusing on agribusiness. Banks signed a Finance Initiative, led by CBE. The Initiative is an document renewing their commitment to sustainable innovative public-private-academic alliance to promote finance. ASOBANCA also announced that it would sustainable finance in Ecuador, aligning with international develop 22 more sector guides in 2022, covering all standards and good practice. productive sectors in the economy.* • For tracking and aggregated disclosure, as part of the Sustainable Finance Initiative, a survey has been Sub-pillar 3: Expectations for FI Actions designed to track data related to ESG integration by FIs. • The Ecuador Sustainable Banking Protocol requires FIs The survey will be conducted on an annual basis. The to develop policies and procedures to manage ESG risks same survey will be replicated in Colombia and Mexico and performance, and to report ESG performance both to by partner academic institutions. the regulator and publicly. • Capacity building efforts have been supported by the * The sector guides were issued in November 2021, after this report data were collected and analyzed. Learn more at https://www.ecobusiness. fund/es/academia/rescursos/guias-sectoriales-para-los-agronegocio. 1 6 Pillar 2: Climate Risk Management Pillar Progress: Formulating Pillar 2: Climate Risk Management Ecuador is in the “Formulating” sub-stage of the “Preparation” stage of the Climate Risk Management Pillar. ASOBANCA issued the Sustainable Banking Protocol for Ecuador (2016) which includes the management and disclosure of environmental and social risk in the banking sector, and lists climate mitigation and adaptation as part of sustainable financing activities. Preparations and activities include research, surveys, and/or multi-stakeholder engagement and awareness raising on expectations for climate risk management. Strategic Alignment Ecuador Latin America SBFN Average Expectations of Financial Regulatory and Industry Institution (FI) Actions Association Actions Sub-pillar 1: Strategic Alignment actions in Ecuador include research, capacity building, • Addressing climate change risks is a national priority, technical guidance (such as climate scenarios and as indicated in Ecuador’s Nationally Determined risk assessment methodologies), and the development Contribution (NDC) to the Paris Agreement and national of regulatory and supervisory expectations for FIs for climate policies, including the National Strategy on managing climate-related physical and transition risks Climate Change 2012-2025. In the financial sector, and financial impacts. ASOBANCA issued the Sustainable Banking Protocol for • In terms of awareness raising for environmental and Ecuador, which includes the management and disclosure social (E&S) and climate risks, ASOBANCA continues of environmental and social risk in the banking sector, to work with the Federation of Latin American Banks and lists climate mitigation and adaptation as part of (FELABAN), a member of SBFN, to address important sustainable financing activities. topics such as E&S risks (including climate risks), climate financing, and monitoring and impact. In 2020, Ecuador Sub-pillar 2: Regulatory and Industry Association Actions launched the Sustainable Finance Initiative. • ASOBANCA issued the Sustainable Banking Protocol for Ecuador in 2016, including Strategy 1 for climate Sub-pillar 3: Expectations for FI Actions mitigation and adaptation as part of sustainable finance • As part of awareness raising on climate risk activities and Strategy 3 for overall environmental and management, in 2020 seven banks in Ecuador social risk management and credit analysis. participated in a regional survey, undertaken by the • The Quito Stock Exchange is a member of UN United Nations Environment Programme Finance Sustainable Stock Exchanges, and a formal supporter Initiative and the Development Bank of Latin America of the Task Force on Climate-related Financial (CAF), with coordination by FELABAN, on the approaches Disclosures (TCFD). of financial institutions to incorporating climate change • As part of Ecuador’s future progress, recommended into risk management. 1 areas of focus for regulatory and industry association 1 As noted in the UNEP-FI-Development Bank of Latin America (CAF) “How the Banks of Latin America and the Caribbean incorporate climate change in their risk management” internalizing ESG systems tends to create favorable conditions for the analysis of climate risks within financial institutions. 7 2 • As part of future progress, the Sustainable Banking Protocol for Ecuador for E&S risk management can be further elaborated to guide the expected actions of FIs for the development of their strategy, governance, risk management, metrics and targets, and disclosure approaches for climate-related physical and transition risks and financial impacts. 8 Pillar 3: Financing Sustainability Pillar 3: Financing Pillar Progress: Sustainability Developing Ecuador is in the “Developing” sub-stage of the “Implementation” stage 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. In 2020, the Quito Stock Exchange published the Guide for Green and Social Bonds, promoting green bond issuance in the country. Strategic Alignment Ecuador Latin America SBFN Average Expectations of Financial Regulatory and Industry Institution (FI) Actions Association Actions Sub-pillar 1: Strategic Alignment Sub-pillar 2: Regulatory and Industry Association Actions • Ecuador’s national framework for financing sustainability • Ecuador’s Sustainable Banking Protocol provides covers both the banking sector and the capital markets; definitions and examples of sustainable finance assets. it is led by the BCE, ASOBANCA and its 2016 Sustainable The Guide for Green and Social Bonds for Ecuador issued Banking Protocol for Ecuador for the banking sector, and by Quito Stock Exchange in 2020 provides guidelines for the Quito Stock Exchange and its 2020 Guide for Green and the issuance of green and social or sustainability bonds, Social Bonds for Ecuador for the capital markets. with requirements for external party verification to ensure • The Ecuadorian financial sector’s approach to promoting the credibility of sustainability instruments. financial flow into green and sustainability projects and sectors is in alignment with international goals, good Sub-pillar 3: Expectations for FI Actions practices, and standards, such as the UN Sustainable • The Guide for Green and Social Bonds for Ecuador Development Goals, and the International Capital Market requires bond issuers to publish annual updates on Association’s Principles for Green Bonds. the performance and impacts of the sustainability • Ecuador’s Sustainable Banking Protocol involves cross- instruments in compliance with relevant national and/or agency collaboration between financial supervisors and international standards. regulators, industry associations, and FIs. In 2020, Ecuador launched the Sustainable Finance Initiative, an innovative public-private-academic collaboration led by BCE to promote sustainable finance in Ecuador, aligning with international standards and good practice. For details for each pillar, sub-pillar, indicator, datapoint, and referring policy document, please visit the SBN Online Analytical Tool at [URL TBD]. 3 9 2. Progress by 3 Sub-Pillars and 11 Indicators 3. Progress by three sub-pillars and 11 indicators Figure4: Figure 1: Overview ofEcuador’s Overviewof Ecuador’ssustainable financecoverage sustainablefinance coveragein inthree frameworkareas threeframework 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 10 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 12 Sector Guides Guide for Green and Sustainable Banking to Enhance Banks’ Social Bonds for Protocol for Ecuador Environmental and Ecuador Social (E&S) Risks and (Quito Stock Exchange, Mitigation Strategies (ASOBANCA, 2016) 2020) (ASOBANCA, 2021) Download framework documents and check for updates at www.sbfnetwork.org/library 11 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. 12 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 13 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. 14 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? 15 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 16 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 17 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. Extensive becoming data are on available industry association. multi-stakeholder supported by regulators reporting instructions industry association. multi-stakeholder and industry. or templates provided Consistent and becoming trends among available on financial engagement and/or and industry. or templates provided engagement and/or by the financial sector Consistent comparable and data are trends among institutions financial regarding awareness raising for Activities include by the financial sector awareness raising for Activities include regulator and/or comparable data are becoming available on institutions climate risk regarding management the financial sector. awareness raising, regulator and/or the financial sector. awareness raising, and/ industry association and becoming trends in the available on practices climate and the risk management resulting benefits. research, guidance industry reflecting association international and trends in the practices and the resulting benefits. research, or capacity buildingand/ guidance for reflecting international of financial institutions or capacity building onfor practices. of financialto in relation institutions Climate financial institutions practices. in relation to Climate financial institutions managing climate-related on Risk Management and managing climate-related Risk Management the resulting and benefits. physical and transition the resulting benefits. physical and risks in line transition with the risks in line with the new expectations in the new expectations national framework. in the national framework. 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. 18 Sustainability and the Sustainability resulting benefits.and the 7 resulting benefits. 7 ACCESS THE SBFN GLOBAL PROGRESS REPORT AND COUNTRY REPORTS AT: WWW.SBFNETWORK.ORG