Surveying environmental and social risk management in emerging markets
Washington DC, US
ERM assisted the International Finance Corporation (IFC), part of the World Bank Group, in conducting a Global Survey on Factors Affecting the Environmental and Social Risk Management of Financial Institutions in Emerging Markets.
This survey was intended to inform efforts by IFC and its partners to support the financial sector in implementing sustainable finance practices with the greatest potential for value creation for financial institutions and their clients. ERM was commissioned to lead the survey of 15 countries across Latin America, North Africa and the Middle East and South East Asia. The survey covered approximately 200 institutions to identify the factors that promote or discourage the adoption of environmental and social risk management (ESRM) practices in emerging markets and offer insights for advancing sustainable finance and green lending practices.
The survey targeted financial institutions, banking regulators and associations, and supporting institutions in each market. The methodology involved an online survey supplemented by workshops and in-person interviews with select participants. Following the collection of data, ERM developed a diagnostic framework to synthesize the results and categorize respondents according to a continuum that gauged the maturity of ESRM practices in the selected countries. The framework mapped progress against four factors: engagement, regulatory frameworks, capacity and implementation.
The IFC and ERM presented the collated data in a global synthesis report that summarized the survey's approach, key trends and emerging issues from the results, and the drivers and challenges around sustainable finance practices in the selected markets. More detailed results were provided in individual country reports and three regional reports