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The Sustainable Banking and Finance Network (SBFN) Measurement Framework

Overview

The Sustainable Banking and Finance Network (SBFN) Measurement Framework is a tool used by financial sector regulatory agencies and industry associations from emerging markets to advance sustainable finance in line with international best practice. The framework was designed with extensive member input under the leadership of the Measurement Working Group and Co-Chairs, and updates are guided by the Measurement Working Group and agreed by all SBFN members.

Framework Components

The framework consists of three intersecting themes: ESG Integration, Climate Risk Management, and Financing Sustainability. For each theme, it assesses regulatory guidance, supervision strategies, disclosure requirements, and voluntary industry approaches.

Two Main Components

• Progression Matrices: These provide an overview of market-wide progress for all SBFN countries across three typical stages of development:
  • Commitment
  • Development
  • Advancing
  • Consolating
  • Mainstreaming
  • Preparation
  • Maturing
  • Implementation
• Pillar Benchmarking: A dynamic assessment is conducted across several priority pillars of sustainable finance, using qualitative and quantitative datapoints to assess progress and allow comparison across countries.

Using the Framework

The framework can be used as:

• A mapping tool to capture the dynamic interaction of collective insights, market-based actions, and policy leadership demonstrated by SBFN members
• A benchmarking tool for SBFN members to learn from and compare peer approaches
• A forward planning and capacity building tool to identify future policy pathways and capacity building needs