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Morocco’s Financial Institutions Show Improvement in Climate Risk Management Practices
Rabat - A recent report by the Sustainable Banking and Finance Network (SBFN) has revealed that Morocco’s financial institutions have made significant progress in improving their climate risk management practices.
National Framework for Sustainable Finance
According to the report, Morocco has mapped under the “Advancing” sub-stage of the “Implementation” stage for the Financing Sustainability Pillar. The country’s national sustainable finance framework is in place, with implementation tools and initiatives underway. This framework directs financial flows into green, social, climate, and sustainability-linked projects.
Credit Institutions’ Responsibilities
The report highlights that credit institutions are required to:
- Develop and implement governance, risk management, including the use of climate scenarios and stress tests
- Use disclosure practices for climate and environmental risks
- Report on their climate risk-management and climate-opportunities approaches using TCFD (Task Force on Climate-related Financial Disclosures) practices publicly on an annual basis
Regulatory Directive 5/2021
The AMMC’s Regulatory Directive n° 5/2021 for Credit Institutions Regarding the Management of Climate-related and Environmental Risks has played a crucial role in promoting climate risk management among financial institutions. This directive requires credit institutions to:
- Put in place policies and procedures for defining, issuing, managing proceeds, tracking performance, and reporting on green, social, or sustainability-focused products
ESG Integration Progress
The report also notes that Morocco’s financial institutions have made significant progress in terms of ESG (Environmental, Social, and Governance) integration. Several institutions have implemented ESG risk management frameworks and integrated ESG factors into their investment decisions.
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“This report demonstrates the commitment of Morocco’s financial institutions to sustainable finance,” said [Name], CEO of SBFN. “We commend the efforts of these institutions in implementing climate risk management practices and look forward to continued progress in this area.”
Importance of Sustainable Finance
The SBFN report highlights the importance of sustainable finance in addressing global challenges such as climate change, environmental degradation, and social inequality. The network has called on financial institutions to prioritize sustainable finance practices and support the development of green economy sectors.
Learn More
For more information on Morocco’s sustainable finance framework, please visit [URL TBD].