Banks across Cambodia have pledged their commitment to sustainability, signing an agreement to integrate environment safeguards into finance decisions.
The Association of Banks of Cambodia (ABC) gathered in Phnom Penh last week to discuss the environmental and social safeguards to be implemented into future finance and technology practices within the nation. ABC acting chairman, Charles Vann, said: “The intent is to develop and design environmental and social standards which are appropriate for Cambodia.”
The Mekong Partnership for the Environment – a $15 million project funded by the USA government – has placed its support behind the project, in an effort to ensure Cambodian banks increase their sustainable lending initiatives and protect the country’s threatened natural environment.
“Not only are sustainable lending practices vital to Cambodia’s economic growth and environmental health, but they make good business sense,” said project director, Christy Owen.
“These practices benefit communities, but they also benefit banks by reducing risk and opening up new markets.”
In addition to leading its own initiative, the ABC was recently invited to the International Finance Corporation’s Sustainable Banking Network (IFCSBN).
Made up of regulatory agencies, banking associations and emerging financial companies, the IFCSBN have signalled their commitment to driving sustainable finance on a global scale.