Sustainable Banking Network (SBN)

Overview – May 2021

1. What is the Sustainable Banking Network? The Sustainable Banking Network (SBN) is a voluntary community of financial sector regulators, central , industry associations, and environmental regulators from emerging markets committed to advancing sustainable finance for national development priorities, financial market deepening, and stability. Their approaches draw on international good practices, reflecting national contexts and priorities.

IFC, the private sector arm of the World Group, acts as the Secretariat to the SBN, playing the role of strategic and technical advisor, as well as global convener to SBN and its members.

SBN members currently represent 61 institutions from 43 countries, including Argentina, Bangladesh, Brazil, Cambodia, Chile, China, Colombia, Costa Rica, Dominican Republic, , , , Georgia, Ghana, Honduras, India, Indonesia, Iraq, Jordan, Kazakhstan, Kenya, Kyrgyzstan, Lao PDR, Maldives, Mexico, , Morocco, , Nigeria, Pakistan, Panama, Paraguay, Peru, Philippines, Samoa, Serbia, South Africa, Sri Lanka, Thailand, Tunisia, Turkey, Ukraine, and Vietnam. These countries account for over $43 trillion, or 86%, of the banking assets across emerging markets and can play a critical role in delivering the Sustainable Development Goals (SDGs) and national green growth agenda.

SBN’s main objectives are to

• Support members in developing and implementing national frameworks and awareness that promote and enable a market-wide shift to sustainable finance. • Convene a global platform for member practitioners to benefit from best practices and deepen collective learning. • Provide capacity building and knowledge sharing, with a focus on peer-to-peer exchanges among members.

SBN achieves these achieves these objectives through the following activities:

• In-person gatherings, such as the SBN Biennial Meetings and the Global Green Finance Leadership Programs.

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• Peer-to-peer exchanges among members, such as study tours, virtual knowledge exchanges, and learning events. • Member-led thematic working groups including the Measurement Working Group, Sustainable Finance Instruments Working Group (the former Green Bond Working Group), IDA Task Force, and the recently launched Data and Disclosure Working Group. • An online Knowledge Base with extensive case studies, SBN research, latest developments in the SBN community, and market intelligence on sustainable finance, www.ifc.org/sbn. • Regular membership communications on the progress of policy development and implementation across member countries. • The biennial SBN Global and Country Progress Reports, the most comprehensive benchmarking of national initiatives on sustainable finance across emerging markets. www.ifc.org/sbn2019report. • Direct advisory support to members in developing sustainable finance guidelines, roadmaps, policy frameworks and industry standards, delivered in collaboration with IFC and World Bank advisory programs.

2. History and purpose of SBN SBN originated from a collective need expressed by banking regulators and associations for a global platform for knowledge and learning on sustainable banking. At the International Green Forum co-hosted by IFC and the China Banking Regulatory Commission in Beijing, China, in 2012, banking regulators and associations from 10 countries requested that IFC facilitate a knowledge network for financial regulators and associations.

As the private sector arm of the , IFC provides technical assistance to SBN members based on its practical experience gained from over two decades of setting and applying global standards in managing environmental, social and governance (ESG) risk and performance in project finance in emerging markets, as well as the leadership of the World Bank Group in financing innovative solutions to climate change and other environmental and social challenges.

IFC acts as Secretariat and knowledge partner for SBN and connects members with its global development partners. IFC has supported members in developing and implementing a wide range of sustainable finance frameworks, policies, roadmaps, guidelines, and voluntary initiatives suited to their national contexts. As of December 2020, 28 countries had launched a total of 96 policies and principles supporting sustainable finance. The process of developing and implementing these frameworks is generating a new, positive dynamic between the public and private sector, enabled by SBN’s mix of both regulators and industry associations. This is seen in the mix of market-based actions and policy leadership that is resulting in more effective frameworks and implementation.

The SBN Annual Meeting has grown into SBN’s flagship event, not only for existing and potential members but also as a global forum of thought-leaders on sustainable finance. In response to COVID- 2

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19, the SBN Secretariat has actively engaged members through webinars and virtual events that cater to different regions, time zones, and topics.

3. What do we mean by sustainable finance? The SBN community has evolved the following definitions over the past decade:

Sustainable Finance refers to policies, regulations, and practices by regulators, supervisors, industry associations, and financial institutions (FIs) to

i. Reduce and manage environmental, social, and governance (ESG) risks resulting from and affecting financial sector activities, including the risks of climate change; and ii. Encourage the flow of capital to assets, projects, sectors and businesses that have environmental and social benefits.

National Framework refers to the collective set of policies, roadmaps, guidance, regulations, and/or voluntary principles and initiatives by national regulators or industry associations to define and promote sustainable finance. SBN recognizes that national frameworks for sustainable finance vary from country to country and are influenced by national priorities and characteristics. They are also interdependent with other national roadmaps, policies, and regulations.

4. How does SBN support green growth? By working with financial regulators, SBN supports and contributes to the formulation of green finance strategies in member countries. Most SBN members cite their national green growth strategy, sustainable development strategy or climate strategy as the driver for their commitment to promoting sustainable finance and interest in developing guidelines or standards. Global drivers for national strategy include the United National Sustainable Development Goals and climate change commitments set forth in the Paris Agreement.

For example, the financial market regulator in Indonesia, OJK, sees sustainable finance as a means to realize the country’s commitment to both global and national sustainable development goals and climate change targets. OJK issued a 10-year Sustainable Finance Roadmap as a medium- to long-term work plan in 2014, followed by an Umbrella Sustainable Finance Policy in 2017 to green the whole finance system, including banking, capacity market, insurance and pension funds. In 2021, OJK issued the Indonesia Sustainable Finance Roadmap Second Phase (2021-2025), deepening the nationwide sustainable finance ecosystem driven by both supply and demand sides.

Mongolia is another example. The Mongolian , Bank of Mongolia, is a founding member of SBN. The country’s national Green Development Strategy is a key driver of the Mongolia Sustainable Finance Initiative. The Initiative, in turn, allowed the Mongolia Bankers Association to launch the Mongolian Sustainable Finance Principles and industry-sector guidelines in 2014. The Bank 3

3 of Mongolia uses a supervision approach to review banks’ implementation of the Principles. The Ministry of Environment, Green Development, and Tourism is also a member of SBN and actively supports the initiative for national green development targets. In 2019, Mongolia published its National Green Taxonomy, and a year later, the Central Bank of Mongolia launched a public national Green Statistics online database, calculating the amount and ratio of green in the portfolio based on this Taxonomy.

SBN member countries are also the main contributors of global green bond issuance. As of December 2020, the 7 SBN member countries in the Asia-Pacific region issued green bonds valued at $146 billion or 66% of all green bond issuance in the region. In the Africa region, the 6 SBN member countries issued green bonds totaling USD 3.924 billion or 99% of all the green bond issuance in the region. In the Latin American region, the 10 SBN member countries issued USD 21.47 billion in green bonds, or 98.7% of all the green bond issuance in the region.

5. What is unique about SBN? Led by its members, SBN is a unique global initiative focused on creating an open and practical collaborative environment between the key enablers of financial markets - including financial regulators, central banks, capital market regulators, stock exchanges, and industry associations. This promotes an integrated “ecosystem” approach to creating shared vision, goals, and strategies at national level.

SBN was the first and is the largest global learning platform on sustainable finance dedicated to financial sector regulators and industry associations in emerging markets. SBN countries are at the forefront of the global sustainable finance trend and are leading in their regions.

SBN facilitates peer-to-peer learning and partnership. The greatest value for members is in learning from the experiences of their peers and being able to benchmark their progress. Members attribute many of their actual advancements to the Network’s organic enabling capacity.

6. What kinds of activities does the Network engage in? Input and technical assistance for members in developing and implementing national frameworks on sustainable finance: In collaboration with IFC and World Bank programs, SBN works directly with regulators and banking associations, supporting members to develop regulatory guidelines, industry standards, and tools for banks or other financial intermediaries such as pension funds, insurance companies or non-banking financial intermediaries where applicable. SBN also conducts in-country awareness-raising and capacity-building workshops and training sessions for regulators and industry associations.

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Peer-to-peer learning and knowledge sharing on the latest trends, innovations, and challenges in sustainable finance: A core activity of SBN is generating and sharing case studies and lessons learned from member countries. This is done via the SBN Annual Meeting, the Biennial Global Progress Report and Country Reports, member-led Research, newsletters and peer-to-peer knowledge exchanges (virtual or in- person). There is consensus to promote more consistent knowledge sharing among members, particularly in sharing best practices that demonstrate the business case for sustainable finance and strategic links to national objectives, such as financing for green growth.

Member-led thematic working groups: SBN convenes a wealth of expertise through member institutions that have developed national approaches to sustainable finance and are committed to sharing their insights and lessons with peers. One of the most valuable ways this is achieved is through member-led working groups established in response to priority issues identified by members and with the aim of developing practical technical resources to support them. Three working groups and one task force have been established to date in response to member demand.

Measurement Working Group (MWG). Established in 2016, the WG responds to SBN member demand for a systematic approach to assess and benchmark country progress in developing national sustainable finance frameworks. Up to September 2020, the WG comprised representatives from 12 countries and regions and was chaired by the China Banking and Insurance Regulatory Commission (CBIRC) and the Indonesia Financial Services Authority (OJK). The WG has developed and refined a Measurement Framework that was approved by all members and continues to evolve to keep pace with country-level and global developments. The WG members provided leadership for SBN’s 1st Global Progress Report and 15 Country Progress Reports in 2018, as well as the 2nd Global Progress Report and 30 Country Progress Reports in 2019. New Co-Chairs and members of the WG were announced in October 2020 and guided the latest update of the SBN Measurement Framework and are supporting development of SBN’s 3rd Global Progress Report, which will be published in October 2021.

• Working Group Co-Chairs: Superintendencia Financiera de Colombia (SFC), Mongolian Sustainable Finance Association (MSFA), and the Moroccan Capital Market Authority (AMMC).

• Working Group Members are , Association of Banks in Cambodia, China Banking and Insurance Regulatory Commission, Colombian Banking Association (Asobancaria), , Reserve Bank of Fiji, , Honduras National Commission of Banks and Insurance (CNBS), the Indonesia Financial Services Authority (OJK), Kenya Bankers Association, Union of Banks of Kyrgyzstan, Panama Banking Association (ABP), Bangko Sentral ng Pilipinas (BSP), Central Bank of Sri Lanka, , Banking Regulation and Supervision Agency of Turkey (BDDK), Latin 5

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American Banks Federation (FELABAN).

Sustainable Finance Instruments Working Group (formerly the Green Bond Working Group). Established in 2017, this WG responds to members’ interest in the global green bond trend and associated market opportunities. It led to the 2018 report “Creating Green Bond Markets”, which mapped green bond market developments in over 22 emerging markets and included a practical toolkit for SBN members. Going forward, the WG will expand to reflect new developments in social and sustainability bonds and loans and other financial instruments with green, social, and sustainability benefits. Incoming Co-Chairs and Members to be Announced.

Data & Disclosure Working Group. Planned for the second half of 2021, this WG responds to the current global need for improved data and disclosure by the financial sector to support national sustainable finance ecosystems and enable regulators and supervisory agencies to better assess environmental, social, and governance (ESG) risks at the market level and incentivize the transition to green economies. Recent trends include the growing need for climate-related data, driven by initiatives such as the Task Force on Climate-related Financial Disclosures (TCFD). The WG will map the latest country-level developments in sustainable finance data and disclosure across the SBN community as well as international initiatives to facilitate the continued development of tools and practical guidance for SBN members.

Member-led IDA Task Force. Launched in May 2018 under the Measurement Working Group, the IDA Task Force aims to identify common challenges and opportunities in developing sustainable finance in low-income countries (GNI per capita below $1,165 in fiscal year 2018), including but not limited to exploring the link between sustainable finance, inclusive finance, and poverty reduction. The IDA Task Force is made up of 11 SBN countries that qualify for investment by the International Development Association (IDA), namely Bangladesh, Cambodia, Ghana, Honduras, Kenya, Kyrgyzstan, Lao PDR, Mongolia, Nepal, Nigeria and Pakistan. The Task Force is co-chaired by the Mongolian Sustainable Finance Association and the . It resulted in the 2020 report, “Necessary Ambition: How Low-Income Countries Are Adopting Sustainable Finance to Address Poverty, Climate Change, and Other Urgent Challenges”.

Strengthening regional knowledge exchange Regional communities of practice are emerging as a powerful tool to accelerate learning among members facing similar challenges and opportunities. SBN entered into an MOU in 2016 with the Latin American Banking Federation (FELABAN), which represents over 600 bank members from 19 countries, to jointly promote sustainable banking in Latin America. On March 30th, 2021, central banks of the Association of Southeast Asian Nations (ASEAN) officially endorsed the initiative on the ASEAN Sustainable Banking Principles (SBP), proposed by the with SBN and IFC support. The SBP will serve as guiding principles to help ASEAN central banks further develop sustainable banking guidelines and tools aligned with each respective country’s context.

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Contributing to global dialogue There is strong interest among members to play a global role and to raise the international profile of the Network. SBN has become increasingly active in advancing dialogue on sustainable finance at the global level. As a key knowledge partner for the G20 Sustainable Finance Study Group since 2016, SBN has been providing technical inputs on developments in emerging markets, using member experiences to inform a report with recommendations on the future of green finance. The working group was recently re-established under the Italian presidency of the G20. Through the World Bank Group, SBN also contributes to the Network for Green the Financial System, dedicated to central banks.

SBN Annual Meetings – a key forum for knowledge sharing and generation: Co-hosted by IFC and member countries, the annual SBN meetings are the principal space for members to present national initiatives in the sustainable banking/finance space, to discuss current issues, and to jointly develop new approaches to sustainable banking/finance.

SBN Annual meetings hosted to date: Event Location Date 1st International Green Credit Forum co-hosted with the China Banking Regulatory Commission (CBRC) – Beijing, China May 2012 1st SBN Annual Meeting 2nd International Sustainability Finance Forum co- Lagos, Nigeria March 2014 hosted with the Central Bank of Nigeria International Sustainable Finance Forum, co-hosted with the Superintendency of Banking, Insurance and Lima, Peru September 2015 Private Pension Fund Administrators of Peru (SBS) – 3rd SBN Annual Meeting International Sustainable Finance Forum, co-hosted with the Indonesia Financial Service Authority (OJK) – Bali, Indonesia December 2016 4th SBN Annual Meeting International Sustainable Finance Forum and Governors Reception, concurrently with WBG/IMF Washington DC, USA October 2017 Annual Meetings International Sustainable Finance Forum, concurrently Washington DC, USA April 2019 with WBG/IMF Annual Meetings

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7. What has been learned to date through SBN?

Approaches to sustainable finance Influenced by country context and culture, three general approaches to sustainable finance have emerged among members: i. Regulatory approach, led by financial or banking regulators, such as in Bangladesh, China, Indonesia, Morocco, Peru, and Vietnam.

ii. Industry-led voluntary approach, led by banking associations such as in Colombia, Ecuador, Kenya, Mexico, Mongolia, Turkey, and South Africa.

iii. Collaborative approach combining industry-led initiatives and policy leadership, starting with voluntary principles led by the banking association, then reinforced through regulatory actions led by regulators such as Brazil and Nigeria.

International environmental and social (E&S) sustainability standards have proven useful when designing country-specific sustainable finance policies (e.g., IFC Performance Standards, Equator Principles, World Bank Group Sector-Specific Environmental Health and Safety Guidelines). Many countries have used international standards as a starting point or benchmark when designing policies and guidance that fit with country-level legislation and institutional systems. Implementation, compliance and enforcement mechanisms are significantly stronger when standards are country specific. When consistent with international standards, such country-specific policies are also likely to have greater system-wide impact (rather than only project-specific impact) and to use government and development partner resources more efficiently.

How knowledge sharing and capacity building support members on their sustainable finance journey: Peer-to-peer knowledge sharing and partnership among SBN members are effective ways to shorten the learning curve. These exchanges are demand-driven, member-driven cooperation aimed at concrete action and outcomes that go beyond information sharing.

Capacity building is critical for banks and regulators. SBN works with IFC and World Bank programs to facilitate technical support and harness local expertise of country staff.

Emerging trends in green finance Sustainable finance is evolving rapidly to include the wider financial ecosystem, such as capital markets, insurance providers, and pension funds, as these sectors become increasingly aware of the necessity to manage environmental and social risks and performance, and the resulting business opportunities in areas such as green bonds and sustainability-linked financial products. This trend offers opportunities for synergies between various parts of the financial sector. Consequently, SBN members are increasingly interested in expanding discussions to include sustainable finance across 8

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Public–private collaboration helps open up green markets. SBN is witnessing an increased trend of banking regulators and associations collaborating in their support of sustainable finance, strengthening country-level partnership between the public sector and private sector.

Key mechanisms for effective implementation of sustainable finance policies Embedding sustainable banking in the core business of banks is crucial. Banks surveyed by IFC in 25 emerging markets emphasize that senior management support is critical to ensuring company-wide buy-in and to reinforcing structures for environmental and social (E&S) risk management and sustainable banking. While there is growing interest to increase green lending portfolios, most banks are still struggling with instituting an E&S risk management culture and approach. Some SBN member countries have successfully regulated the embedding of E&S risk management for all banks.

Monitoring and reporting mechanisms help establish supervision of financial institutions’ implementation of sustainable finance policies. Some members have introduced indicators and mechanisms to capture this information. With many SBN member countries still being in the early stages of adoption, four key indicators appear to be useful to track progress: (i) ESG standards and risk management: the adoption and implementation of ESG standards and risk management practices by banks; (ii) green financing flows: the volume and distribution of bank assets to green investment priorities; (iii) financial risk: the impacts on the quality of financial assets from integrating E&S factors (e.g. non-performing loans); and (iv) E&S outcomes: avoidance of negative E&S impacts and achievement of positive impacts in core financing activities.

Market incentives have been introduced by some SBN members to drive banks to implement sustainable finance faster and more strategically. Incentives may focus on: (i) positive recognition for good performers, such as through preferential considerations and recognition during supervision; (ii) increased lending to specific green sectors or market segments, such as through dedicated funds or credit lines; and (iii) appropriate pricing of the currently externalized E&S costs of doing business, such as through taxes on carbon emissions. Fiscal subsidies are treated with caution to avoid subsidies for green industries that artificially create and, when withdrawn, destroy the business case for sustainable practices. Countries may also choose to address subsidies that maintain incentives for non-renewable industries like fossil fuels.

Multi-stakeholder consultation and inter-agency collaboration have been effective in a number of SBN countries. The aim is to build a solid foundation of industry alignment and buy-in before launching a national framework on sustainable finance, such as a policy, roadmap, or voluntary principles, or framework components, such as disclosure requirements and amendments to corporate governance codes. In addition, a characteristic approach of SBN members is to engage with other regulatory agencies and industry stakeholders in both the design and implementation of national sustainable finance frameworks. Initially a way of overcoming pre-existing regulatory or 9

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8. How does SBN engage with global and regional partners? SBN and IFC have been building partnerships with global and regional organizations and initiatives to promote sustainable finance and support SBN members. Such partnerships include:

United Nations Environmental Programme Financial Initiative (UNEP FI). In January 2015, IFC and UNEP FI signed a Memorandum of Understanding (MoU) to strengthen cooperation in knowledge sharing and capacity building for SBN.

G20 Sustainable Finance Working Group (SFWG). Launched in January 2016 under China’s G20 Presidency, the SFWG aims to enhance the mobilization of private green investment through financial markets. SBN was invited to be a key knowledge partner and contributed an Input Paper on “Sustainable Banking in Emerging Markets” with case studies of member experiences, providing an emerging markets perspective to inform the global agenda. The SFWG Synthesis Report in 2016 and its recommendations were endorsed by the G20 Leaders. One of the recommendations calls for scaling up SBN as a global learning platform, with G20 support. IFC and SBN continued to engage with G20 SFWG in 2017 under the German Presidency and in 2018 under the Argentine Presidency and contributed to the input papers “Raising $23 Trillion: Greening Banks and Capital Markets for Growth” and “Private Equity and Venture Capital’s Role in Catalyzing Sustainable Investment”.

Latin American Banking Federation (FELABAN). In 2016, IFC and FELABAN signed an MoU to jointly promote sustainable banking through FELABAN’s network of 19 banking associations and over 600 banks in Latin America with a focus on capacity building.

Association of Southeast Asia Nations (ASEAN). Partnering with Indonesia’s Financial Services Authority (OJK), SBN hosted the first ASEAN Roundtable for Sustainable Finance during SBN’s 4th Annual Meeting in Indonesia in 2016. Representatives from ASEAN countries discussed a joint approach to advance sustainable finance for the region, leveraging SBN’s global experience and actions already taken by ASEAN countries. Delegates also agreed to explore regional capacity building for banking regulators, associations and banks, including through the ASEAN Bankers Association.

Network for Greening the Financial System (NGFS). SBN and NGFS are partnering to advance the sustainable finance agenda globally and to contribute to the Sustainable Development and Climate Goals. SBN, represented by IFC as its Secretariat and along with the World Bank Group, is an official observer to NGFS, participating in NGFS’ three work streams.

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Annex 1. SBN Members Countries on World Map

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Annex 2. SBN Member List (61 members from 43 countries as of May 2021)

Year of No. Institution Country Joining East Asia & the Pacific 1 Bank of Lao PDR Lao PDR 2012 2 Bank of Mongolia Mongolia 2012 3 China Banking Regulatory Commission China 2012 4 China Ministry of Environmental Protection China 2012 5 Otoritas Jasa Keuangan (Indonesia Financial Services Authority) Indonesia 2012 6 State Bank of Vietnam Vietnam 2012 7 Thai Bankers Association Thailand 2012 8 Vietnam Ministry of Natural Resources & Environment Vietnam 2012 9 Bangko Sentral ng Pilipinas (Central Bank of the Philippines) Philippines 2013 Department of Environmental and Natural Resources of the Philippines 2013 10 Philippines (DENR) 11 Mongolia Bankers Association Mongolia 2013 12 Mongolia Ministry of Environment and Green Development Mongolia 2013 13 China Banking Association China 2014 14 Association of Banks in Cambodia Cambodia 2016 15 Reserve Bank of Fiji Fiji 2017 16 Samoa 2019 17 Mongolian Sustainable Finance Association Mongolia 2020 18 Maldives Maldives 2021 Europe & Central Asia 19 Banking Regulation and Supervision Agency of Turkey (BRSA) Turkey 2015 20 National Bank of Georgia Georgia 2017 21 Union of Banks of Kyrgyzstan Kyrgyzstan 2018 22 Ukraine 2020 23 National Securities and Stock Market Commission Ukraine 2020 24 Association of Serbian Banks Serbia 2020 Agency of the Republic of Kazakhstan for Regulation and Kazakhstan 2021 25 Development of Financial Market Latin America 26 Asobancaria (Banking Association of Colombia) Colombia 2012 27 Brazil 2012 Superintendence of Banks, Insurers, and Private Pension Funds 28 Peru 2013 of Peru (SBS) 29 Honduran Banking Association (Ahiba) Honduras 2015

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30 National Commission on Banking and Insurance (CNBS) Honduras 2015 31 Sustainable Finance Round Table Paraguay 2015 ADEBA – Asociacion de Bancos Argentinos (Banking Association 32 Argentina 2016 of Argentina) Asobancos – Associacion de Bancos del Ecuador (Banking 33 Ecuador 2016 Association of Ecuador) 34 Central Bank of Paraguay Paraguay 2016 35 Federation of Latin American Banks (FELABAN) Latin America 2016 36 Mexican Bankers Association (ABM) Mexico 2016 Semarnat (Secretariat of Environment and Natural Resources) of 37 Mexico 2016 Mexico Superintendence of Banks and Financial Institutions of 38 Chile 2016 Chile (SBIF) 39 Brazilian Federation of Banks (FEBRABAN) Brazil 2017 40 Commercial Banks Association of the Dominican Republic (ABA) Dominican Republic 2017 41 Panama Banking Association (ABP as per its acronym in Spanish) Panama 2017 Superintendencia Financiera de Colombia (SFC, Financial 42 Colombia 2018 Superintendence of Colombia) General Superintendency of Financial Institutions of Costa 43 Costa Rica 2019 Rica (SUGEF) 44 Central Bank of Ecuador Ecuador 2021 Middle East & North Africa 45 Central Bank of Morocco Morocco 2014 46 Pakistan 2015 Central Bank of Jordan Hashemite Kingdom 2016 47 of Jordan 48 Federation of Egyptian Banks (FEB) Egypt 2016 49 Moroccan Capital Market Authority (AMMC) Morocco 2018 50 Central Bank of Egypt Egypt 2019 51 Central Bank of Iraq Iraq 2019 52 Central Bank of Tunisia Tunisia 2019 South Asia 53 Bank of Bangladesh Bangladesh 2012 54 Nepal 2014 55 Central Bank of Sri Lanka Sri Lanka 2016 56 Indian Banks Association India 2016 Sub-Saharan Africa 57 Central Bank of Nigeria Nigeria 2012 58 Kenya Bankers Association Kenya 2015 59 Ghana 2016

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60 Banking Association South Africa (BASA) South Africa 2016 61 Ghana Association of Bankers Ghana 2016

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Annex 3. Existing Guidance from SBN Members (96 documents as of Dec 2020)

Country Issuer Policies/Principles/Guidelines Year

Bangladesh Bangladesh Bank Sustainable Finance Policy for Banks and FIs 2020

Bangladesh Bangladesh Bank Sustainable Rating for Banks and FIs 2020

Bangladesh Bangladesh Bank ESDD Risk Assessment Tool 2018

Bangladesh Bangladesh Bank Green Banking Reporting template 2018

Bangladesh Bangladesh Bank Guideline on ESRM for Banks and FIs in Bangladesh 2017

Bangladesh Bangladesh Bank Policy Guidelines for Green Banking 2011

Implementing the TCFD recommendations: a roadmap Brazil FEBRABAN 2019 for the Brazilian banking sector FEBRABAN and Brazil Guidelines for Issuing Green Bonds in Brazil 2016 CEBDS Central Bank of Brazil Resolution No.4,327 2014 Brazil Framework for the Creation and Implementation of a Brazil FEBRABAN 2014 Socioenvironmental Responsibility Policy (SARB14)

Brazil FEBRABAN Brazil Protocolo Verde 2008

Association of Cambodian Sustainable Finance Principles Cambodia 2019 Banks in Cambodia Implementation Guidelines V4 Association of Cambodia Cambodian Sustainable Finance Principles 2018 Banks in Cambodia Chilean a new rule to require ESG and climate risk to be part of Chile Superintendencia 2020 the investment analysis of country's pension funds de Pensiones People’s Bank of China Notice on Evaluating Green Credit Performances 2018 China Asset Management China Association of Green Investment Guidelines 2018 China Ministry of Ecology and Environment and China Compulsory Environmental Pollution Liability Insurance China 2018 Insurance Regulation Regulatory Commission China Banking China Green Banking Assessment Plan (Pilot) 2017 Association

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National Association of China Financial Market Guidelines for Green Bond 2017 Institutional Investors China Securities Guidelines for Green Bond issuance for listed China Regulatory 2017 companies Commission People’s Bank of China, China China Guidelines for Establishing the Green Financial System 2016 Banking Regulatory Commission, etc. China Securities China Regulatory Guidelines for Green Bond issuance 2016 Commission People’s Bank of Notice on Green Bond for Inter-bank Market & Green China 2015 China Bond Endorsed Project Catalogue People’s Bank of China, China China Green Credit Key Performance Indicators 2014 Banking Regulatory Commission, etc. People’s Bank of China, China China Green Credit Statistics & Reporting Template 2013 Banking Regulatory Commission, etc. People’s Bank of China, China China Green Credit Guidelines 2012 Banking Regulatory Commission, etc. Superintendencia Colombia Financiera de Good Practice Guide for Issuing Green Bonds 2020 Colombia Superintendencia Colombia Financiera de External Circular 028 of 2020 2020 Colombia E3 and Metrix Roadmap of actions to launch a Green Bond market in Colombia 2017 Finanzas Colombia General Guidelines for the Implementation of Colombia Asobancaria 2016 Environmental and Social Risk Analysis

Colombia Asobancaria Colombia Protocolo Verde 2012

Ecuador Asobanca Protocolo de Finanzas Sostenibles del Ecuador 2016

National Bank of Georgia ESG Reporting and Disclosure Principles 2020 Georgia The National Bank Georgia Roadmap for sustainable finance in Georgia 2019 of Georgia The National Bank Corporate Governance Code for Commercial Banks in Georgia 2018 of Georgia Georgia

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Ghana Bank of Ghana Guidance Notes for the Sustainable Banking Principles 2019

Ghana Bank of Ghana Agriculture and Forestry Sector Guidance Note 2019

Ghana Bank of Ghana Power and Energy Sector Guidance Note 2019

Ghana Bank of Ghana Construction and Real Estate Sector Guidance Note 2019

Ghana Bank of Ghana Manufacturing Sector Guidance Note 2019

Ghana Bank of Ghana Oil & Gas and Mining Sector Guidance Note 2019

National Banking Standard for the Management of Environmental and Honduras and Insurance Social Risk applicable to the Institutions of the Financial 2020 Commission (CNBS) System OJK - Indonesia Indonesia Sustainable Finance Umbrella Policy 2017 Financial Services OJK - Indonesia Indonesia Technical Guidelines on the Implementation of POJK 2017 Financial Services OJK - Indonesia Indonesia OJK Regulation about Issuing Green Bond Guidelines 2017 Financial Services OJK - Indonesia Indonesia Sustainable Finance Roadmap (2015-2019) 2015 Financial Services Kenya Bankers Kenya Kenya Green Bond Guidelines Background Document 2019 Association Nairobi Stock Kenya NSE Listing Rules 2018 Exchange

Kenya National Treasury National Policy on Climate Finance 2016

Kenya Bankers Kenya Kenya Sustainable Finance Principles and Guidelines 2015 Association Climate Finance Mexico Green Bond principles MX 2018 Advisory Group Asociacion de Mexico Protocolo de Sustentabilidad de la ABM 2016 Bancos de Mexico Central Bank of Mongolia Green Loan Statistics 2020 Mongolia Central Bank of Mongolia Mongolia National Green taxonomy 2019 Mongolia, MSFA Mongolian Sustainable Mongolia National sustainable finance roadmap of Mongolia 2018 Finance Association (MSFA) Mongolian Bankers Mongolia Mongolian Sustainable Finance Principle Guidelines 2014 Association Mongolian Bankers Mongolian Sustainable Finance Principles - Agriculture Mongolia 2014 Association Sector Guideline

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Mongolian Bankers Mongolian Sustainable Finance Principles - Construction Mongolia 2014 Association and Infrastructure Sector Guideline Mongolian Bankers Mongolian Sustainable Finance Principles - Mongolia 2014 Association Manufacturing Sector Guideline Mongolian Bankers Mongolian Sustainable Finance Principles - Mining Mongolia 2014 Association Sector Guideline

Morocco AMMC Green, Social and Sustainability Bonds Guidelines 2018

Morocco AMMC Amended Listed Rules - draft 2018

Morocco AMMC CSR and ESG Guidelines 2017

Roadmap for aligning the Moroccan financial sector Morocco Bank Al-Maghrib 2016 with sustainable development

Morocco GPBM Banks and Climate Charter 2016

Morocco AMMC Green Bonds Guidelines 2016

Guideline on Environmental & Social Risk Management Nepal Nepal Rastra Bank 2018 (ESRM) for Banks and Financial Institutions Environmental and Social Due Diligence (ESDD) Nepal Nepal Rastra Bank 2018 Checklist and E&S Risk Rating Tool Securities and Nigeria Exchange SEC New Rule on Green Bonds 2018 Commission Nigerian Stock Nigeria Nigerian Stock Exchange website - Green Bonds 2018 Exchange Nigerian Stock Nigeria NSE Proposed Rules for Listing of Green Bonds (draft) 2018 Exchange Central Bank ok Reporting Template for the Nigerian Sustainable Nigeria 2014 Nigeria Banking Principles Central Bank ok Nigeria Nigerian Sustainable Banking Principles 2012 Nigeria State Bank of Pakistan Green Banking Guidelines 2017 Pakistan Government of Pakistan NDC 2016 Pakistan Securities and Exchange Pakistan Corporate social responsibility voluntary guidelines 2013 Commission of Pakistan Asociación Panama Bancaria de Protocolo de Finanzas Sostenibles de Panama 2018 Panamá Asociación RECOMENDACIONES PARA LA IMPLEMENTACIÓ N DEL Panama Bancaria de 2018 PROTOCOLO DE FINANZAS SOSTENIBLES DE PANAM Panamá

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Paraguay Central Bank ESG risk management guide 2018

Ministry of Peru Green Protocol of Peru 2020 Environment Superintendency of Banks, Insurers and Peru Guia de Bonos Verdes para el Peru 2018 Private Pension Funds of Peru Superintendency of Role of enhanced due diligence in the Regulation of Banks, Insurers and Peru Socioenvironmental Risk Management for Financial 2015 Private Pension Firms Funds of Peru Superintendency of Banks, Insurers and Regulation for Social and Environmental Risk Peru 2015 Private Pension Management Funds of Peru Central Bank of Philippines Sustainable Financial Framework 2020 Philippines South JES - Johannesburg A new Sustainability Segment 2020 Africa Stock Exchange South JSE Debt Listings Requirements for the Green Segment 2017 Africa Banking South Association South Principles for managing Environmental and Social risks 2015 Africa Africa South PRI South Africa Code for Responsible Investing in South Africa 2011 Africa Network South Government of Green Economy Accord 2011 Africa South Africa Central Bank of Sri Sri Lanka Roadmap for sustainable finance in Sri Lanka 2019 Lanka Sri Lanka’s Banker Sri Lanka Sri Lankan Sustainable Banking Principles 2018 Association Banks Association Turkey Sustainability Guidelines for the Banking Sector 2014 of Turkey Stake bank of Decision approving the Scheme on the green bank Vietnam 2018 Vietnam development in Vietnam (No 1604/QD-NHNN)

Vietnam Ministry of Finance Decree 163/2018/ND-CP on corporate bond issuance 2018

Directive on promoting green credit growth and ES risk Stake bank of Vietnam management in credit granting activities (No 03/CT- 2015 Vietnam NHNN) Decision on issuance of Action Plan of the banking Stake bank of Vietnam sector to implement the National Strategy on Green 2015 Vietnam growth toward 2020 (No 1552/QD-NHNN)

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