Nepal Bankers’ Association (NBA) has released the “Implementation Handbook on Environmental and Social Risk Management (ESRM) for Banks and Financial Institutions in Nepal,” marking an important milestone in the advancement of sustainable finance and responsible banking practices in nepalese banking sector.
The handbook helps to bridge the gap between the Nepal Rastra Bank’s Environmental and Social Risk Management Guideline (2022) and day-to-day banking operations. It provides practical and user-friendly guidance to strengthen transaction-level environmental and social risk screening, assessment, management and monitoring. It also supports banks in managing environmental and social risks within their own operations and promotes the development of key supporting frameworks.
While remaining fully aligned with NRB’s regulatory requirements, the handbook also draws upon internationally recognized frameworks such as the IFC Performance Standards, OECD Guidelines, and the Equator Principles, thereby supporting banks in meeting both national and international expectations.