Guideline on Environmental & Social Risk Management (ESRM) For Banks and Financial Institutions

Country :
Institution(s) :

The Environmental & Social Risk Management (ESRM) guidelines set down standards for the identification, assessment, and management of E&S risks. Hydropower-related E&S criteria have been given special attention, given the Nepal’s reliance on this form of energy. The guidelines also provide a reporting template for all banks to report to Nepal Rastra Bank (NRB) on sustainability performance.

The core objective of the ESRM Guideline is to require B/FIs to integrate Environmental & Social risk management into the overall credit risk management process in order to fully inform the credit authority of E&S risks prior to the financing decision regarding individual transactions.