Sustainable finance is more than a global trend. As it continues to gain momentum, it aims to address the most pressing challenges we are now facing:

• What are the main challenges that the financial sector in Emerging Markets and Developing Economies (EMDEs) face to adapt ESG best practices? Is it realistic to request EMDEs to be ready to implement the same standards as advanced economies?


• Particularly, “Greening the Financial Sector” requires a significant effort from all players in the market. What is the role that the public sector, especially regulators, and the private sector should play? What are the main constraints to make it happen?


• How can the financial sector promote an efficient and profitable flow of credit and capital, and at the same time achieve positive ESG outcomes? Is there a trade off?


• What are good examples globally that could be folllowed?

This session will feature high-level perspectives on the outlook for sustainable finance for the next five years and solutions to assist the financial sector and regulatory agencies tackle these challenges from now on.

It asks, “what are the missing pieces of the puzzle? What is working well and can be amplified to accelerate positive change?”

Moderator:

Mr. Alfonso Garcia Mora, Vice-President Asia-Pacific, International Finance Corporation (IFC), and Chair, Sustainable Banking and Finance Network (SBFN)

Speakers:

Dr. Wimboh Santoso, Chairman, Otoritas Jasa Keuangan (Indonesia Financial Services Authority, OJK)

Dr. Ma Jun, Co-Chair of G20 Sustainable Finance Working Group, Co-Chair of EU IPSF Taxonomy Working Group, and Chairman of Green Finance Committee of China Society for Finance and Banking.

Mr. Tobias Adrian, Financial Counsellor and Director of the Monetary and Capital Markets Department, International Monetary Fund (IMF)

Ms. Jolly Mokorosi, Director, Batseta Council for Retirement Funds for South Africa, and inaugural Deputy Chair of the Batseta Asset Owner’s Forum; Professional Executive Principal officer and Independent Trustee, various funds

In response to members’ demand for a systematic approach to assess and benchmark country progress in developing national sustainable finance frameworks, the Measurement Working Group was launched in December 2016 at the 4th SBFN Global Meeting in Bali, Indonesia. The Working Group has developed and refined a Measurement Framework that was approved by all members and continues to evolve to keep pace with country-level and global developments.

The Measurement Framework guides the development of the SBFN’s Global and Country Progress Reports, the most comprehensive benchmarking of national sustainable finance initiatives across emerging markets, which are published every two years to support members and the broader financial sector.

Building on the successful 3rd Global Progress Report launched last October, this session will provide suggestions on the activities and priorities for SBFN Measurement Working Group in the next two years.

Moderator:

Ms. Rong Zhang, SBFN Global Coordinator

Speakers:

Ms. Nomindari Enkhtur, CEO, Mongolia Sustainable Finance Association (MSFA), Co-Chair of the Measurement Working Group

Ms. Mariana Escobar Uribe, Head of Sustainable Finance, Financial Superintendency of Colombia (SFC), Co-Chair of the Measurement Working Group

Mr. Yasser Mounsif, Head of Corporate Finance and Financial Disclosure, Morocco’s Capital Market Authority (AMMC), Co-Chair (Representative) of the Measurement Working Group

Building on the major success of green bonds, the last several years have seen an accelerating trend in new types of sustainable finance instruments, including green, social, and sustainability bonds, sustainability-linked bonds and loans, and transition finance.

This trend has been supported by national and regional initiatives to develop green and social taxonomies. SBFN countries are intensifying their work to encourage sustainability-focused finance in their markets. With this in mind, SBFN launched a Working Group on Sustainable Finance Instruments in December 2021 to explore this rapidly evolving landscape, country experiences, and opportunities for SBFN members to develop common tools and approaches. This session will discuss the first milestones of research conducted by the Working Group and proposals for next steps.

Ms. Louise Gardiner, SBFN Coordinator for Working Groups and African Region

Mrs. Yvette Fernando, Deputy Governor, Central Bank of Sri Lanka

Mr. Enrico Hariantoro, Group Head, Otoritas Jasa Keuangan (Indonesia Financial Services Authority, OJK) and Co-chair of the SBFN Sustainable Finance Instruments Working Group

Mr. Giorgio Trettenero, Secretary General, Federation of Latin American Banks (FELABAN), and Co-chair of the SBFN Sustainable Finance Instruments Working Group

Mr. Xavier Desmadryl, Global Head of ESG Research and PRI, HSBC Global Asset Management

A consistent challenge identified by SBFN members is the need for credible and comparable data in the financial sector related to ESG risk, climate risk management, and sustainable capital flows.

More and better data is required for regulators to analyze the impact of sustainability risks on financial stability and alignment of financial sector activities with national development priorities. Financial institutions, in turn, face a variety of sustainability reporting frameworks at the global level and pressure from stakeholders to increase portfolio and project-level risks transparency. Launched in January 2022, SBFN’s Data and Disclosure Working Group is mapping current sustainability disclosure initiatives in SBFN countries and developing guidance and a toolkit to support SBFN members.

This session will discuss country experiences, initial research results, and the next phase of work.

Ms. Martine Valcin, Global Manager, ESG Advisory, Knowledge and Learning, International Finance Corporation (IFC)

Ms. Mariam Kharaishvili, Chief Economist at National Bank of Georgia

Mr. Yanfei Ye, Senior Advisor of the Policy Research Bureau, China Banking and Insurance Regulatory Commission (CBIRC), and Co-chair of the SBFN Data & Disclosure Working Group

Mr. Amaury Oliva, Director of Sustainability, Financial Citizenship, Consumer Relations and Self-Regulation, Brazilian Federation of Banks (FEBRABAN)

SBFN’s IDA Task Force supports low-income member countries with tailored approaches to advance sustainable finance frameworks.

The Task Force completed a diagnostic study in 2019 to understand the unique challenges and opportunities low-income countries face in sustainable finance, resulting in a Diagnostic Report, “Necessary Ambition: How Low-Income Countries Are Adopting Sustainable Finance to Address Poverty, Climate Change, and Other Urgent Challenges”. The report features 16 case studies, 8 country reports, and a set of tools to support the development and implementation of sustainable finance roadmaps. The report found a strong link between sustainable finance and financial inclusion in many IDA countries, a trend reinforced by the findings of the 2021 SBFN Global Progress Report.

This session will discuss sustainable finance innovations in low-income countries and the growing links with financial inclusion.

Ms. Nuru Mugambi, SBFN Secretariat Advisor and former Director of Public Affairs & Sustainable Finance Lead, Kenya Bankers Association

Mr. Khondkar Morshed Millat, General Manager, Bangladesh Bank, and Co-chair of IDA Task Force

Dr. Kameshnee Naidoo, Making Access Possible (MAP) Global Programme Advisor, United Nations Capital Development Fund

Ms. Sophie Sirtaine, CEO, Consultative Group to Assist the Poor (CGAP)

Collaboration was a key theme in the 2021 SBFN Global Progress Report. Members reported a wide range of collaborative initiatives at national and regional levels, among regulators, and between regulators and industry.

International organizations are also playing a crucial role in building capacity, supporting research, and helping countries learn from each other. International organizations can also help develop common global tools. SBFN, through the World Bank and IFC, is collaborating with regional and global initiatives to ensure coordinated action and support.

This session will provide an update on these initiatives and opportunities for future collaboration.

Ms. Mary Porter Peschka, Director, Sustainability and Gender Solutions, International Finance Corporation (IFC)

Mr. Ephyro Luis Amatong, Former Commissioner at Securities & Exchange Commission, Republic of the Philippines and Co-chair of ASEAN Capital Markets Forum Sustainable Finance Working Group

Mr. Jean Boissinot, Head of the Secretariat, Network of Central Banks and Supervisors for Greening the Financial System (NGFS)

Mr. Anthony Miller, Coordinator of the United Nations Sustainable Stock Exchanges initiative (UNSSE)

Ms. Esohe Denise Odaro, Head of Investor Relations and Sustainable Finance, International Finance Corporation (IFC), and Chair of the Steering Committee of the Green and Social Bond Principles, ICMA

Mr. Amit Puri, Chair, Equator Principles Association, Managing Director and Global head of E&S Risk Management, Standard Chartered Bank

In the next 10 years, emerging markets will continue to face many opportunities and challenges. IFC has estimated $23 trillion in investment potential in climate-focused and green sectors in emerging markets between 2016 and 2030. The Organization for Economic Co-operation and Development (OECD) estimates that $2.5 trillion in financing are needed in developing countries to achieve the SDGs, with an additional projected shortfall of $1.7 trillion as a result of COVID-19.

In this global context, the efforts undertaken by SBFN members and partners to advance sustainable finance have never been more critical. SBFN’s work plan has always been guided by members, through global events and various working groups, research, knowledge sharing, and capacity-building activities. This session reflects on the insights shared by members during this Global Meeting, and explores key themes identified for future work.

Speakers:

Mr. Alfonso Garcia Mora, Vice-President Asia-Pacific, International Finance Corporation (IFC), and Chair, Sustainable Banking and Finance Network (SBFN), in conversation with Ms. Georja Calvin-Smith, Journalist and Moderator