IFC, a member of the World Bank Group, has partnered with the Central Bank of Iraq (CBI) to sign an agreement for developing environmental and social risk management guidelines for the banking sector. As part of this initiative, they have also introduced a seven-year Sustainable Finance Roadmap and an Environmental, Social, and Governance (ESG) Code to enhance sustainable financing and strengthen Iraq’s financial infrastructure.
The Sustainable Finance Roadmap, covering the period from 2023 to 2029, outlines CBI’s strategic vision to improve Iraqi banks’ performance in managing environmental and social risks, promote sustainable banking products, and boost the sector’s competitiveness. The roadmap, which includes the development of an ESG code, also aims to support financial stability, mitigate environmental and sustainability risks, and foster social development.
“The global demand for sustainable financial products highlights the need for banks to consider ESG issues in their risk management framework to attract investments. As a Central Bank, we play a key role in sustaining the development, growth, and financial stability of Iraqi banks, ensuring their ESG performance matches international standards” said H.E. Ali Mohsen Ismail, Governor of the Central Bank of Iraq.
“This partnership marks a significant milestone in Iraq’s strategic approach towards sustainable finance and demonstrates IFC’s commitment to partnering with the country’s Central Bank and the banking sector to strengthen its financial infrastructure and increase the competitiveness of its banks,” said Fawaz Bilbeisi, Regional Manager for IFC in the Kingdom of Saudi Arabia, Iraq, and Lebanon.