Managing Environmental and Social Risks: A Roadmap for National Development Banks in Latin America and the Caribbean

Abstract

National development banks (NDBs) play a unique role in promoting sustainability. Due to their public mandate and contribution to the local credit markets, NDBs in the Latin American and Caribbean region are well positioned to support sustainable and low-carbon investments, and they can also effectively leverage private capital for these public goods. Many NDBs in the region have acted as pioneers in promoting sustainability in their respective countries. This publication presents reasons and incentives for financial institutions and, in particular, NDB's to implement environmental and socials risks management systems. It also presents key success factors and practical recommendations for NDBs willing to design and implement this type of framework.