Banking on sustainability : financing environmental and social opportunities in emerging markets

The report presents the business case for sustainable banking by drawing on responses to a 2005 Sustainability Survey of Financial Institutions conducted by IFC as well as 14 case studies from pioneering financial institutions. The new survey and additional feedback received from a number of financial institutions have revealed a demand for information, both to raise awareness and to aid in building institutional capacity. The most immediate needs expressed by the respondents were for: a) more information on sustainability issues specific to particular regions; b) guidance on investment opportunities in specific industries and ways to involve local expertise; and c) practical examples that demonstrate successful implementation practices. With these needs in mind, this report builds and expands on previous research and provides greater insight into the specific issues and drivers within the banking sector. The survey results as well as more detailed, practical experiences of 14 financial institutions help to strengthen the business case for sustainable banking and show how progress has been made in the implementation of formal social and environmental management procedures. Going a step further, the report also analyzes current global and regional trends and presents an overall picture of where we stand today with regard to social and environmental sustainability for financial institutions in emerging markets. The report demonstrates how all these elements contribute to a continuous process in which improvements in social and environmental management lead to greater business benefits.