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Morocco’s Financial Institutions Show Capacity to Improve Climate Risk Management Practices
Rabat, Morocco - In a significant move towards sustainable finance, Morocco’s financial institutions have demonstrated their ability to improve climate risk management practices, according to a report by the Sustainable Banking and Finance Network (SBFN).
Improving Climate Risk Management Practices
The report assesses the country’s progress in implementing the three pillars of sustainable finance: ESG integration, climate risk management, and financing sustainability. It shows that Moroccan financial institutions are taking concrete steps to integrate climate risks into their strategic planning and governance frameworks.
Key Findings
- Morocco’s financial institutions have made significant progress in integrating ESG considerations into their lending decisions.
- The country has developed a robust framework for managing climate risks, with credit institutions required to integrate climate scenarios and stress tests into their risk management practices.
- Moroccan financial institutions are increasingly adopting sustainable finance instruments, such as green bonds and social bonds.
Morocco’s Framework for Financing Sustainability
The report notes that Morocco’s framework on financing sustainability is aligned with international good practices and standards, such as the United Nations’ Sustainable Development Goals (SDGs) and the European Union’s Green Bond Standard. The country’s National Framework Coverage, Alignment with International Goals & Standards, Alignment with National Goals & Strategies, Overall Approach & Strategy, Technical Guidance, Supervisory Activities & Incentives, and Expectations of Financial Institution (FI) Actions are all in place to support sustainable finance.
About SBFN
The Sustainable Banking and Finance Network (SBFN) is a global initiative that aims to promote sustainable finance practices among financial institutions and support the United Nations’ Sustainable Development Goals (SDGs). The network provides a platform for financial institutions, regulators, and other stakeholders to share best practices, knowledge, and expertise in sustainable finance.