Environmental and social financial standards in Asia

Project completed

Developing the human resources of financial institutions in order to create sound, efficient, and responsive financial institutions that are environmentally and socially sustainable can help achieve substantial business benefits.

Country/region Topic Period Budget
01.12.2012 - 31.12.2018
CHF  5’280’000

Banks face a number of risks related to the activities of their clients. The impact of climate change, resource scarcity, environmental pollution & social issues involuntary resettlement are just some of the factors that might increase the risk incurred by banks extending credit to clients. Yet the lack of environmental & social (e&s) risk management systems hampers the financial sector in identifying and assessing their environmental liabilities, and of managing the risks associated with them in a coherent manner.


The objective of the program is to promote the adoption, implementation and enforcement of internationally agreed E&S standards with a view of boosting the E&S audit performance and thus increase climate-friendly investments in Vietnam, Indonesia, China, Thailand. To that end, the program supports these countries in their endeavors to develop, implement and enforce a set of practical e&srisk management guidelines applicable to financial institutions. These guidelines will draw from international best practices. Specific knowledge and capacity building will be provided to develop, implement and enforce a set of practical environmental risk management guidelines, to individually assist financial institutions and to ramp up the environmental and social risk management consulting and training capacity.

Medium-term outcomes

create demand for sustainable banking through regulatory guidelines, minimum standards and policy incentives.

support financial institutions directly through training and knowledge sharing.

establish and boost local environmental and social consulting and training capacity.


Expected results:  

Existing E&S risk management policy and procedures are reviewed.

E&S risk management policy and implementation guidelines developed.

Regulators and key national stakeholders sensitized on the E&S risk management.

South-south cooperation and knowledge sharing facilitated.

Directorate/federal office responsible SECO
Credit area Development cooperation
Project partners Contract partner
  • International Finance Corporation

Budget Current phase Swiss budget CHF    5’280’000 Swiss disbursement to date CHF    0 Budget inclusive project partner CHF    6’136’000
Project phases

Phase 1 01.12.2012 - 31.12.2018   (Completed)