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Pakistan launches Environmental and Social Risk Management Manual to enable banks to address risk

Oct 18, 2023 – The State Bank of Pakistan, a SBFN member since 2015, launched its Environmental and Social Risk Management (ESRM) Manual in November 2022. A set of monitoring and evaluation indictors for banks to report ESG performance improvement over time are also launched in conjunction with the Manual.

The Manual with user friendly tools and checklists is designed for banks to address risk issues across their lending and investment portfolios. The Manual is benchmarked to SBFN Measurement Framework and developed with IFC support through a country-based advisory project . It is part of SBP’s wider actions to develop resilient banking sector in the country.

Greening the sector would be incomplete without effective management of environmental, social and climate risks. The publication of the ESRM Manual is accompanied by a roll out of several train-the-trainer sessions across Pakistan designed to build local capacity and awareness about the environmental and social risk management.

To read the full story of SBP’s collaboration with IFC click here.

To read the ESRM Manual click here.