Social and environmental performance in the financial sector
Between May and August 2017, BNDES consulted with eight development finance institutions about their socioenvironmental performance in order to identify good practices and opportunities for the improvement of the socioenvironmental management system of the Bank, within the framework of the implementation plan of its Social and Environmental Responsibility Policy (PRSA).
The interviews included the following dimensions:
- strategic planning;
- formalization of internal policies and procedures;
- organizational structure;
- socioenvironmental assessment and monitoring;
- operations with financial institutions;
- practices of transparency and engagement with stakeholders;
- climate change; and
- challenges in the implementation of a socioenvironmental management system.
Institutions consulted:
Climate change and promotion of sustainable development are highlights in the strategic planning
Regarding strategic planning, two themes stand out: climate change and the promotion of sustainable development, with priority given to some of the goals of the UN 2030 Agenda for Sustainable Development.
Among the main trends in climate change are:
- Disclosure of financial information related to the impact of climate change: inclusion of climate risk management in portfolio and new projects evaluation, and transparency on exposure to climate risks;
- Carbon disinvestment: transfer of resources from carbon-intensive activities to green investments.
The institutions interviewed reported participating in initiatives to address the climate change effects in the financial sector. This theme is the focus, for example, of a working group of multilateral banks and initiatives such as the Mainstreaming Climate Action within Financial Institutions.
Regarding the promotion of sustainable development, the strategic planning of the institutions prioritizes one or more goals established in the 2030 Agenda. The commitment of multilateral development banks to this agenda was formalized in October 2016 through the Statement by the Multilateral Development Banks: Delivering on the 2030 Agenda.
Thus, the aim is to coordinate common actions to address critical issues in the implementation of sustainable development goals, such as forced displacement, infrastructure, urbanization, climate financing and private investment.
Access here the Social and environmental performance in the financial sector: benchmarking of development finance institutions report and learn more about the complete results of the other dimensions evaluated.
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