During a conference in Washington, the Sustainable Banking and Finance Network (SBFN), under the auspices of the International Finance Corporation (IFC), presented its annual report for 2024, highlighting the advances of member countries in sustainable finance. The report places Morocco among the top performers in terms of establishing ESG (environmental, social, and governance) frameworks, managing climate risks, and sustainability-focused financing. The SBFN also launched a dynamic tool, the Data Portal, designed to track sustainable finance initiatives in member countries.
Morocco is praised for its progress in establishing sustainable finance policies. The report, unveiled in the presence of Nezha Hayat, president of the Moroccan Capital Market Authority (AMMC) and co-chair of a SBFN working group, shows that Morocco is at the “Advancement in Implementation” stage of sustainable finance policies. This recognition is the result of Morocco’s efforts to integrate sustainable practices into its financial sector, although it has not yet reached the “maturity” stage.
The Sustainable Banking and Finance Network, created in 2012, is a community of financial regulators, central banks, finance ministries, and professional associations from emerging markets committed to promoting sustainable finance. Morocco, represented by Bank Al-Maghrib and the AMMC, is part of this network which includes 91 member institutions representing 70 countries.
According to the 2024 report, Morocco is particularly advanced in “ESG Integration” and “Sustainable Financing.” The “ESG Integration” pillar evaluates regulatory guidelines and supervisory strategies for managing ESG risks in financial operations. As for the “Sustainable Financing” pillar, it shows the interest of emerging countries in allocating capital to sectors with environmental benefits. In the area of “Climate Risk Management,” Morocco also stands out as being at the “Implementation Development” stage.
Since the last report in 2021, SBFN members have established frameworks for managing climate and nature-related risks, demonstrating their commitment to the Paris Agreement. Thirty-nine countries have adopted frameworks to manage environmental and social risks in investment decision-making, thereby mobilizing financial flows towards activities supporting sustainable development goals. Approximately $759 billion in thematic bonds have been issued across forty-five SBFN member countries.
The launch of the Data Portal by the SBFN represents a significant advancement. This dynamic tool allows for continuous tracking of sustainable finance initiatives, facilitating benchmarking between countries and regions. It will serve as a catalyst for peer learning, knowledge sharing, and experience exchange among SBFN members. Nezha Hayat, president of the AMMC, stated that this innovative portal will enable tracking progress, identifying best practices, and fostering cross-learning, thus accelerating the transition to a more sustainable future.