The rise of sustainable finance is progressively transforming the rules of access to international markets. Environmental, social, and governance criteria, more commonly known by the acronym ESG, have now emerged as a decisive factor in investor decisions. For Moroccan banks, this evolution translates into an acceleration of green bond issuances and an enhancement of non-financial reporting. Behind this dynamic lies a key question: is this a structural transformation of the banking model or a tactical adjustment aimed at meeting market expectations?
In an interview with Le360, Said Skounti, a researcher at the IMAL Initiative, notes a growing awareness within the Moroccan banking sector regarding the importance of integrating ESG criteria. Long hindered by a lack of empirical data and feedback, this evolution is beginning to manifest in visible changes in governance and financial communication among institutions.
The publication of social responsibility reports and the integration of non-financial indicators into bank strategies reflect this progress. However, the dynamics remain uneven. The central question is one of depth in alignment. Do ESG criteria now constitute a structural framework for risk management and credit allocation, or do they primarily hinge on regulatory compliance and image?
On an international scale, this debate is already well established. In Europe, for instance, the Green Asset Ratio, which measures the share of assets aligned with the green taxonomy, remains relatively low despite the intensity of institutional discourse on climate transition. This situation raises concerns about the risk of “greenwashing,” meaning the potential gap between stated commitments and actual transformations in investment portfolios.
In Morocco, green bond issuances currently represent the most visible expression of this transition towards sustainable finance. These instruments enable banks to mobilize resources for funding low-carbon projects while attracting institutional investors attentive to ESG criteria. However, for Said Skounti, true transformation cannot be measured solely by the volume of these issuances. It primarily depends on the integration of climate risk into credit policies and risk management frameworks.
This evolution requires financial institutions to incorporate energy transition scenarios, climate stress tests, and, ultimately, differentiated carbon risk pricing into their analyses. Without this deeper transformation, the impact of green bonds would remain limited relative to the overall size of bank balance sheets.
Morocco, however, boasts strong regulatory foundations to support this shift. Bank Al-Maghrib has gradually strengthened its supervisory framework concerning sustainable finance. Directive 5/W/2021 explicitly calls on banking institutions to establish governance mechanisms and climate risk management. More recent texts have also enhanced transparency and reporting requirements while introducing the use of climate stress tests in risk assessment.
The integration of these issues is all the more crucial given the significant exposure of the banking system to climate risks. According to the report “Double Trouble,” published jointly by the World Bank and Bank Al-Maghrib, nearly a third of sectoral bank loans are exposed to high physical risks. The energy, transport, agriculture, manufacturing, and mining sectors are among the most affected.
In addition to these physical risks, transition risks related to the gradual decarbonization of the global economy are also significant. The implementation of the European Union’s carbon border adjustment mechanism could, for example, increase export costs in certain carbon-intensive sectors and alter financing balances.
Nevertheless, the effective integration of climate risk into credit decisions remains at a relatively early stage. Banks encounter several obstacles, including a lack of detailed data, uncertainty about energy transition trajectories, and the absence of local empirical studies to accurately calibrate these new risks.
At the same time, pressure from international markets continues to intensify. Institutional investors now systematically incorporate ESG criteria into their investment decisions. According to various international surveys, an increasing share of these investors is willing to forgo transactions when ESG requirements are not met.
This evolution directly impacts access to financing conditions. Globally, climate performance is already beginning to influence the cost of capital and market perceptions of risk. For Moroccan banks seeking to raise funds internationally, alignment with ESG standards may thus become a key factor in competitiveness.
Since COP22 held in Marrakech in 2016, Morocco has progressively strengthened its climate finance framework. Initiatives from Bank Al-Maghrib, national strategies led by the Ministry of Economy and Finance, and reporting requirements from the Moroccan Capital Market Authority contribute to structuring this ecosystem.
Regionally, the country now ranks among the most advanced economies in sustainable finance within North Africa. However, operational implementation remains a challenge, particularly for SMEs, which form the backbone of the economic fabric and still possess limited means to comply with ESG standards.
In the medium term, sustainable finance could become a true lever for international competitiveness. Multilateral banks and institutional investors increasingly favor institutions capable of directing their financing towards projects aligned with global climate objectives. In this context, ESG alignment would no longer merely be a voluntary commitment but a genuine passport to access international financial resources.
