S\u00e3o Paulo \u2013 The Central Bank of Iraq and the International Finance Corporation (IFC) signed an agreement on Sep. 23 to improve sustainable financing and develop guidelines for environmental and social risk management, as well as a roadmap for sustainable finance. The initiatives aim to improve the performance of local banks in environmental and social risk management, offer sustainable banking products, and make the sector more competitive.<\/p>\n\n\n\n
The Sustainable Finance Roadmap will be implemented by 2029 and will follow the concepts of ESG\u2014environmental, social, and governance\u2014sustainability, social development, and governance to promote the financial stability of the banking system while reducing environmental risks.<\/p>\n\n\n\n
This ESG code establishes the standards and processes that banks will need to adopt in the coming years. \u201cThis project is testament to the Central Bank\u2019s ongoing efforts to elevate the banking sector by adhering to international best practices and keeping pace with global developments in the banking industry,\u201d said the governor of the Central Bank of Iraq, Ali Al-Alaq, at the project\u2019s launch ceremony.<\/p>\n\n\n\n