ESRM Enviromental and Social Risk Management Program

ESRM Environmental & Social Risks Management Program is a very important – and often the first – step for a Financial Institution to actively promote sustainability.

Our ESRM technical assistance program is supporting National Development Banks (NDBs) in LAC in the design and implementation of ESRM Environmental & Social Risks Management Program with a specific methodology that has proven successful.

Our support is being applied to one or all of the steps in the process: from institutional capacity building to the actual design of a Financial Institution's own ESRM, up to the design of on-line internal training tools.

The program is available for any country in the region and any public financial institution or agency.

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NDBs play a unique role in promoting sustainability. Due to their public mandate and contribution to the local credit markets, NDBs are best positioned to support sustainable and low-carbon investments, and to effectively leverage private capital for those projects.

Many NDBs in our region have acted as pioneers in promoting sustainability in their respective countries and for most of those pioneers, the management of environmental and socials risks in their portfolios was the first step in their transition.

Implementing an ESRM has many and diverse co-benefits: the ability to attract international funding or the identification of new business opportunities.

The program also embeds a strong dissemination of knowledge component: through many different channels such as this platform, publications, videos or the many events we organize each year, we make sure that all our beneficiaries’ experiences and best practices are available for replication and that the program many outcomes are available to all.

Another powerful dissemination tool is the organization of ad-hoc exchanges of experiences and best practices between FIs.

Implementing an ESRM has Many Co-Benefits

■ Improved credit portfolios risk profile
■ Streamlined processes
■ Identification of new business opportunities
■ Access to new sources of funding

Where is the ESRM Program Being Implemented?

Since its start in 2012, the ESRM program supported more than 10 projects and beneficiaries (see the Project Map for detail).
The ESRM program is raising interest in other regions, and the French Agency for Development (AFD) joined efforts with the IDB to build a series of capacity building & training tools for Financial Institutions globally. The first phase of the collaboration aimed at promoting the need for Financial Institutions to implement ESRM. This first phase was achieved with the realization of 5 video clips on why and how to design and implement an ESRM.

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