The inaugural ‘ESG MENA Bank Tracker’ report by EY found that nearly three-quarters of the MENA banks currently have well-developed ESG strategies in place. “This showcases the growing recognition of the significance of ESG factors in the region’s banking sector and underscoring the commitment of MENA banks to sustainability and responsible financial practices,” said Charlie Alexander, who leads EY’s Financial Services practice in the MENA region. The report also highlights that less than 20% of the banks have developed climate risk policies, and only a fifth have created robust ESG frameworks backed up by key performance indicators. “It’s inspiring to see many banks in the region expanding their offerings of sustainable finance products, particularly in key markets,” said Jessica Robinson, MENA Sustainable Finance Leader at EY. “Nevertheless, given the MENA region’s heightened vulnerability to the effects of climate change, it is imperative that banks act swiftly to incorporate climate risk assessments into their comprehensive risk management frameworks.

Source: The North Africa Journal November 13, 2023 22:48 UTC