Kathmandu: The Nepal Bankers’ Association (NBA), in collaboration with British International Investment (BII) and Invest for Impact Nepal (IIN), organized a 2.5-day Environmental and Social Risk Management (ESRM) workshop aimed at strengthening the capacity of Nepal’s banking sector in the area of sustainable finance.
The workshop focused on integrating environmental and social considerations into banks’ credit appraisal and risk assessment processes, while building a comprehensive understanding of international environmental and social frameworks, including the International Finance Corporation’s (IFC) Performance Standards. Through interactive sessions and practical discussions, participants gained insights into identifying, assessing, mitigating, and monitoring environmental and social risks associated with financing activities.
In addition to structured sessions, the workshop provided opportunities for one-on-one interactions with subject-matter experts. Specialists engaged directly with participants to address bank-specific challenges, emerging environmental and social risks, regulatory expectations, and practical approaches for effective ESRM implementation within the Nepalese banking context.
Amid rising climate-related and sustainability risks, effective ESRM implementation has become a key pillar of sound risk management and long-term financial stability. Strengthening environmental and social risk management practices not only helps banks protect their portfolios and reputation but also enables them to support sustainable economic growth and responsible investment in Nepal.
In response to the growing importance of sustainability-related risks in the financial sector, the Nepal Bankers’ Association has continued to prioritize enhancing banks’ understanding and adoption of robust environmental and social risk management systems.
