State Bank of Pakistan and IFC Host Sustainable Banking Conference in Karachi to Address Climate Change and Promote Green Banking
Today, the State Bank of Pakistan (SBP) and International Finance Corporation (IFC), a member of the World Bank Group, co-hosted the Sustainable Banking Conference in Karachi. The conference aimed to introduce the Environmental and Social Risk Management (ESRM) Implementation Manual to the financial industry and raise awareness about climate change and sustainability. Mr. Jameel Ahmad, Governor of SBP, presided over the conference’s opening session.
Distinguished guests, including Mr. Khawaja Aftab Ahmed, Regional Director of IFC, Mr. Zeeshan Ahmed Sheikh, Country Manager for Afghanistan and Pakistan of IFC, Mr. Toshio Odagiri, Consul General of Japan in Karachi, Dr. Shamshad Akhtar, Chairperson of the PSX Board, Mr. Yaseen Anwar, Senior Policy Advisor of IFC, and Ms. Sima Kamil, Deputy Governor of SBP, were present at the event.
During the conference, SBP Governor introduced the ESRM Implementation Manual for banks and Development Finance Institutions (DFIs) as part of the ongoing efforts to promote green banking in Pakistan. The manual will serve as a procedural reference for banks and DFIs to develop their environmental and social risk management systems, as recommended by SBP’s Green Banking Guidelines.
The conference addressed the urgent need for the financial sector in Pakistan to understand and mitigate the financial repercussions associated with environmental and social risks, especially given Pakistan’s vulnerability to climate change, as evidenced by recent floods.
As the responsible regulator of the financial system, SBP has undertaken various initiatives, including Green Banking Guidelines and Financing Scheme for Renewable Energy, to embed sustainability considerations into the financial sector following international best practices.
Khawaja Aftab Ahmed, IFC Regional Director for the Middle East, Pakistan, and Afghanistan, emphasized that the introduction of the ESRM Implementation Manual represents a significant step towards promoting sustainable banking practices in Pakistan. The manual will help banks manage social and environmental risks during their lending procedures, contributing to a green and inclusive economic recovery.
The conference also featured two high-level panel discussions on crucial subjects, including ESG integration in the financial sector and climate finance risk and climate disclosures, with perspectives from two ex-SBP Governors. Deputy Governor Sima Kamil concluded the meeting, expressing gratitude to all participants.
The implementation of the ESRM Implementation Manual is expected to drive sustainable banking practices in Pakistan, fostering a greener and more resilient financial sector in line with global standards.
