Experts discussed how financial institutions can meet connectivity infrastructure funding demand while ensuring that investments are environmentally and socially (E&S) sustainable at a hybrid seminar cohosted by the Multilateral Cooperation Center for Development Finance (MCDF) and Asian Infrastructure Investment Bank (AIIB). It was held as part of the AIIB annual meeting in Samarkand, Uzbekistan on 26 September.
VIEW THE SEMINAR VIDEO RECORDING
The seminar opened with a presentation by Ms. Rong Zhang, Global Coordinator of the Sustainable Banking and Finance Network (SBFN) at the International Finance Corporation (IFC). The presentation overviewed E&S safeguard trends and opportunities for mitigating climate shocks, biodiversity loss, and social inequality in emerging markets via sustainable finance from the perspective of financial regulators and industry associations.
She described SBFN members’ view of environmental, social, and governance (ESG) risk management as a foundation of sustainable finance, standards gaps across regulatory frameworks and International Financial Institutions (IFIs), and the emergence of artificial intelligence-based tools to support ESG and broader sustainable investing.
A panel including Ms. Zhang and senior representatives from City Bank PLC in Bangladesh, OTP Bank PLC in Hungary, and AIIB went on to share experiences and lessons learned in applying E&S safeguards within their institutions.
The panelists noted the importance of harmonizing diverse E&S standards, capacity building, and considering local contexts to facilitate the application of IFI standards and sustainable connectivity infrastructure project financing by IFIs, the private sector, and partners.
They added that realizing sustainable growth through intermediated finance of connectivity infrastructure requires both E&S standards compliance and a mindset change. This entails moving beyond the perception of E&S standards as obligations and instead recognizing them as tools for risk management and long-term value creation.
The panelists underscored the critical role that financial institutions play in guiding their clients, providing technical assistance, and working closely with them to implement robust E&S frameworks that are practical and beneficial.
“The path to sustainable finance of connectivity infrastructure is a journey requiring continuous learning, adaptability, and collaboration,” said Ms. Ines Fejzic, Senior Environment and Social Development Specialist at MCDF and the seminar moderator.
“By focusing on alignment with International Financial Institution standards, capacity building, flexibility, and building client partnerships, financial institutions can drive forward the integration of environmental and social safeguards, contributing to sustainable and inclusive growth in their operations and investments,” she concluded.
Contact
David Hendrickson
Senior Communications Officer
Mobile: +86 185 0114 6758
david.hendrickson@themcdf.org
