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Central Bank of Bosnia and Herzegovina Joins SBFN to Advance Sustainable Finance

August 14, 2024 – The Sustainable Banking and Finance Network (SBFN) is proud to announce the inclusion of Central Bank of Bosnia and Herzegovina (CBBH) as its newest member. This partnership underscores our shared commitment to advancing sustainable finance and strengthening the resilience of the financial system in response to environmental, social, and governance (ESG) challenges.

The Central Bank of Bosnia and Herzegovina has proactively established two key committees—the Risk Committee and the Investment Committee—each focused on addressing climate-related risks and promoting green investments within their respective scopes. In addition to these efforts, CBBH is poised to launch an ESG Task Force, which will be instrumental in developing a comprehensive roadmap for the bank’s ESG initiatives. A new strategy for the period 2025-2027 is also under preparation, setting forth the bank’s future goals and activities related to ESG and climate issues.

At the national level, Bosnia and Herzegovina has shown strong commitment to the Paris Agreement. In 2020, the country adopted the Climate Change Adaptation and Low-Emission Development Strategy for 2020-2030. In 2021, Bosnia and Herzegovina reaffirmed its commitment by submitting its second national climate pledge to the UNFCCC. By adopting updated Nationally Determined Contributions (NDCs), Bosnia and Herzegovina became one of the first Western Balkan countries to commit to reducing greenhouse gas (GHG) emissions by 33.2 percent by 2030, and by nearly 66 percent by 2050, compared to 1990 levels.

By joining SBFN, CBBH will engage with a global network, providing opportunities to implement innovative activities, share best practices, and contribute to the ongoing development of sustainable banking and finance in Bosnia and Herzegovina. CBBH is focused on building capacity through peer-to-peer exchanges, staying informed about emerging trends and international standards in sustainable finance, and participating in SBFN working groups. These efforts are intended to support positive environmental and social outcomes within the economy, benefiting both businesses and citizens across the country.

Rong Zhang, Global Coordinator of SBFN, expressed enthusiasm for the new partnership: “We are thrilled to welcome CBBH to our growing network of regulators and industry associations committed to advancing sustainable finance. This collaboration presents a unique opportunity to strengthen our efforts in managing ESG risks and enhancing financial performance. Together, we aim to develop innovative financial products that drive capital towards environmentally and socially responsible sectors. Through our joint initiatives, we are confident in our ability to make a meaningful impact on the financial landscape, promoting practices that are closely aligned with global sustainable development goals.”

With CBBH inclusion, SBFN now 94 members across 72 countries, further enhancing its global reach and reaffirming its pivotal role in promoting sustainable finance worldwide.