Pakistan Releases Green Banking Guidelines

October 9, 2017 — The State Bank of Pakistan has taken a phased approach whereby its Green Banking Guidelines will be complimented by relevant tools and additions. The first phase (12 months) requires banks to formulate policies and procedures and have proper capacity building initiatives in the bank as per the requirements. Currently, the guidelines cover environmental and social risk in lending, financing green projects, and reducing the banks’ carbon footprint. The mandatory guidelines are intended to level the playing field in environmental and social (E&S) risk management and stimulate green financing.