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Guideline on Environmental & Social Risk Management (ESRM) For Banks and Financial Institutions

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Summary

The Environmental & Social Risk Management (ESRM) guidelines set down standards for the identification, assessment, and management of E&S risks. Hydropower-related E&S criteria have been given special attention, given the Nepal’s reliance on this form of energy. The guidelines also provide a reporting template for all banks to report to Nepal Rastra Bank (NRB) on sustainability performance. The core objective of the ESRM Guideline is to require B/FIs to integrate Environmental & Social risk management into the overall credit risk management process in order to fully inform the credit authority of E&S risks prior to the financing decision regarding individual transactions.

Source
Issuer

Nepal

Year

2018

Region

Asia

Issuer (type)

Nepal Rastra Bank (NRB) (Central Bank)

Instrument type

Guideline

Disclosure instrument

Yes

Geographical scope

National

Mandatory or voluntary

Mandatory

Text analysis

    • Moderate 0.80%
    • Low 0.02%
    • E focus: climate change, conservation, degradation, effluent treatment, emissions, energy, energy use, environment, environmental management, environmental policy, fisheries, forests, hazardous waste, land use, pollution, recycling, renewable energy, restoration, soil, solid waste, sustainable finance, waste, water, water management, water quality, water use, wetlands, biodiversity
    • S focus: collective bargaining, compensation, discrimination, forced labor, forced labour, gender equality, human rights, recruitment, social impacts, children
    • G focus: audit, equator principles, legal challenge, risk management, accountability
    • Administrative services, Agriculture, Construction, Finance, Management, Manufacturing, Mining, Real estate