Nepal Bankers’ Association (NBA) in collaboration with British International Investment (BII) and Invest for Impact Nepal (IIN) organized an Environmental and Social Risk Management (ESRM) Workshop aimed at strengthening the capacity of the Nepalese banking sector in the area of sustainable finance.
The 2.5-days ESRM Workshop focused on integrating environmental and social considerations into credit appraisal and risk assessment processes, while also developing a comprehensive understanding of international E&S frameworks, including the IFC Performance Standards. Through interactive sessions and practical discussion, participants gained insights into identifying, assessing, mitigating and monitoring environmental and social risks associated with financing activities.
In addition to structured sessions, the workshop provided participants with an opportunity of having direct one to one interaction with the specialists. The experts engaged with participants to discuss bank-specific challenges, emerging E&S risks, regulatory expectations and practical solutions for effective ESRM implementation in the Nepalese banking context.
In the context, while climate risk is increasing, ESRM implementation has been a key pillar of sound risk management and long-term financial stability. Strengthening E&S risk management practices not only helps banks safeguard their portfolios and reputation but also enables them to support sustainable economic growth and responsible investment in Nepal.
In response to the increasing significance of sustainability-related risks in the financial sector, the NBA has focused on strengthening banks’ understanding and implementation of Environmental and Social (E&S) Risk Management systems.
