Environmental and Social Risk Management Guidelines

Financial regulators globally are addressing the need for improved risk management practices amongst lending institutions that consider financial exposure to both environmental and social risks. Throughout the Alliance for Financial Inclusion (AFI) network there are initiatives underway by financial regulators to provide guidance to financial institutions which serve inclusive segments on environmental and social risk management (ESRM) implementation.

This report presents challenges and policy recommendations from the Inclusive Green Finance Working Group and is intended as a tool for regulators or policymakers who are developing ESRM guidelines. The guideline consists of three sections: Preparatory Considerations, Policy Guidance and Implementation Recommendations