The Central Bank of Egypt (CBE) has revealed the efforts it has taken to boost sustainable financing in the banking sector. In an infographic the CBE issued Monday, the bank stated that these efforts included the issuance of guiding principles for sustainable financing in July 20211 by building the necessary capabilities and knowledge, promoting sustainable financing, involving stakeholders, managing climate change risks, applying sustainability principles to the bank's internal activities and work, and preparing reports. The Central Bank has also issued binding supervisory instructions to enhance sustainability and sustainable financing by establishing an independent department for sustainability and financing in each bank, obliging banks to include executive policies and procedures for sustainable financing within the credit and investment policies of the bank, and preparing periodic reports that explain the effective and measurable steps taken by the banking sector in this regard and sustainable financing, and the use of an environmental consultant to evaluate the projects of large companies to be funded from an environmental perspective. The Central Bank announced that all banks have completed measuring the carbon footprint of their main headquarters, in order to activate the fifth principle of the guiding principles for sustainable financing issued by the Central Bank, which stipulates the application of sustainability principles to the activities and work of internal banks. The carbon footprint is an indicator for measuring the emission rates of harmful gases such as carbon dioxide, methane and other gases that cause global warming and climate change. Its objective is to determine the rates of harmful gas emissions, to take the necessary measures, and to develop implementation plans to reduce these rates and limit their negative effects on the environment and climate.
