The Alliance for Green Commercial Banks (The Alliance) is a new global initiative convened by IFC to bring together financial institutions, research institutions, and innovative technology providers to work together to develop a community of green financial institutions in emerging markets to collectively finance the infrastructure and business solutions needed to urgently address climate change.
© The Alliance for Green Commercial Banks
It is our urgent global priority to address the complex and interconnecting needs of turning green investment opportunities in emerging markets into reality. By working together with public and private stakeholders, we hope our work will mobilize the financial sector, and accelerate the transition to a low-carbon global economy.
A member of the World Bank Group, IFC is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic.
FOUNDING MEMBER AND
REGIONAL ANCHOR FOR ASIA
The Hong Kong Monetary Authority (HKMA) is Hong Kong’s central banking institution. One of the HKMA’s main functions is to maintain Hong Kong’s status as an international financial centre, including the maintenance and development of Hong Kong’s financial infrastructure. The HKMA is committed to promoting green and sustainable finance and collaborating with local and global stakeholders to address climate risk. HKMA is a founding member of the Alliance and the first regional anchor (Asia).
One-stop Knowledge Hub: Creating a one-stop shop and peer-to-peer learning platform for financial institutions to acquire knowledge, and tools to develop their green finance roadmaps and transform into credible green financial institutions.Read More
Community of Practice and Innovation: Bringing together the leaders in green finance to develop a community of green financial institutions across emerging markets. Facilitating dialogue and providing thought leadership to catalyze green finance development.Read More
Facilitate Investment for Green Business Opportunities: Helping Alliance members and partners collaborate, unlock the trillions available in green and climate-related investment opportunities and scale up green finance to support a progressive transition to a sustainable future.
Deploy Advisory Support for Green Transformation: Accelerating the transformation of green financial institutions and financing the infrastructure and business solutions needed to urgently address climate change.
We are delighted to welcome five of the world’s leading financial institutions to the Alliance for Green Commercial Banks. Asia is the world’s largest contributor to greenhouse gas emissions, which makes unleashing the region’s climate-smart investment potential critical to tackling climate change. With vast flows of capital from investors into both large corporations and micro, small, and medium-sized enterprises in Asia, all of which are becoming far more aware of the critical need to play their part in the green transition, green finance stands to play a huge role in the region’s sustainable economic development going forward.
The HKMA is committed to making Hong Kong SAR a leading global hub for green finance. Building the capacity of commercial banks and other financial institutions in Asia will help to scale up green finance markets and increase the risk resilience of the sector. The five cornerstone members share our vision of promoting more sustainable and more resilient regional growth, and we are excited to work with them in our collective efforts to address climate and environmental risks.
ALLIANCE KEY PILLARS
- Mainstream green finance
- Reduce financing to GHG intensive industries
GREEN NEW BUSINESS
- Grow green business
- Diversify green financial instruments
- Green strategic planning
- Improve green finance capacity
- Achieving a state of zero carbon dioxide emission
- Achieving net zero carbon dioxide emissions
ENVIRONMENTAL, SOCIAL & CLIMATE RISK MANAGEMENT
- Strengthen climate risk management
- Establish environmental, social and governance (ESG) structure
Overview of International Standardization on Sustainable Finance
The knowledge session discussed the overview of international standardization on sustainable finance, how standardization will support the transition to carbon neutrality, and how standardization instruments will ultimately enhance the sustainability performance of companies. The session was co-organized by the Alliance, China National Institute of Standardization (CNIS) and TC/322 (the technical committee responsible for the development of ISO standards relating to sustainable finance).Read More
Roundtable | Green and Sustainable Capital Market Evolution
This in-depth roundtable takes a deeper dive into the latest developments and the future of sustainable finance. Issuers, investors, regulators and Standard Chartered's industry experts will share insights from different lens, including the evolution of their segments over recent years and the challenges ahead, providing a holistic picture of the market, and more importantly, a vision of the golden opportunities ahead in Asia's sustainable finance landscape.Read More
Training | Green and Sustainable Capital Market Evolution
A training session, co-organized by the Alliance for Green Commercial Banks and Standard Chartered, explores the different types of ESG-labelled bonds and loans, ranging from use of proceeds instruments, where proceeds are used to finance or refinance specific green, social or transition activities, to sustainability-linked instruments, in which the financial characteristics of the instrument are tied to achievement of specific sustainable performance objectives within a defined timeframe.Read More
Climate Risk in Action: A Conversation with Practitioners
As part of the Alliance’s roundtable series on Climate Risk, “Climate Risk in Action: A Conversation with Practitioners” invited market influencers across banks, insurers, ESG solution providers, and thought leaders to share their first-hand experiences and intelligence in climate risk management.Read More
Fireside Chat With Bill Winters on Banking’s Pathway to Net Zero and the Role of Voluntary Carbon Markets
The transition to net zero carbon emissions is the challenge of our generation. This challenge is especially evident in Standard Chartered’ s footprint markets across Asia, Africa and the Middle East, which are most vulnerable to climate change and need the most funding to ensure continuing economic development. Bill Winters, Group Chief Executive of Standard Chartered, shared how fighting climate change and the broader need for sustainable development is changing banking, and the role of banks in the net zero transition journey.Read More