Global Effort to Advance Sustainable Finance Takes Shape

A groundbreaking initiative is bringing together financial regulatory agencies and industry associations from emerging markets to drive sustainable finance practices worldwide.

A Global Network for Sustainable Banking

The Sustainable Banking for a Global Future (SBFN) network, facilitated by the International Finance Corporation (IFC) as secretariat and supported by the World Bank Group, has grown to include 43 member countries representing over $43 trillion in banking assets - nearly 86% of total banking assets in emerging markets.

A Key Tool for Measuring Progress

The SBFN’s Measurement Framework is a key tool for members to track progress, share best practices, and accelerate sustainable finance development. The framework assesses country approaches to developing national sustainable finance frameworks, incorporating international standards and best practices identified by members as crucial to their efforts.

A Member-Led Approach

The framework was designed with extensive member input under the leadership of the Measurement Working Group and Co-Chairs. Updates are guided by the working group and agreed upon by all SBFN members.

Data Collection and Reporting

As of 2021, data collection for the SBFN Global Progress Report relies on member country reporting in line with the updated measurement framework. Information is supported by evidence, verified by the secretariat, and evaluated objectively and transparently. Members approve the final reports.

The Framework’s Three Pillars

The SBFN Measurement Framework is based on three intersecting themes:

• ESG Integration: Assessing regulatory guidance, supervision strategies, disclosure requirements, and voluntary industry approaches.
• Climate Risk Management: Evaluating country approaches to managing climate-related risks in financial institutions.
• Financing Sustainability: Examining national sustainable finance frameworks, incorporating international standards and best practices.

The framework consists of three complementary components:

Three Components

1. Progression Matrices: Provide an overview of market-wide progress across three typical stages of development.
2. Pillar Benchmarking: Conducts a dynamic assessment across several priority pillars of sustainable finance using qualitative and quantitative datapoints to assess progress and allow comparison across countries.
3. Sector Data and Case Studies: Collects quantitative data points and detailed case studies of innovative approaches by regulators and industry.

The Road Ahead

As the SBFN continues to evolve, its measurement framework will serve as a mapping tool, benchmarking tool, and forward planning and capacity building tool for members. The goal is to unlock capital flows for activities that support climate, green economy, and social goals, driving measurable change in emerging markets.

Stay Tuned

Stay tuned for the release of the SBFN’s online case study catalogue, featuring detailed case studies of innovative approaches by regulators and industry.