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Environmental Risk Management for Financial Institutions
The Inter-American Investment Corporation
believes that financial institutions that manage social and environmental
risk to ensure that their clients deal responsibly with pollution, health,
safety, and product quality issues not only avoid fines and other sanctions.
They are profitable, too. In practical terms, managing these risks reduces
reserves for nonperforming loans, improves earnings and balance sheets, and
increases the value of shareholder equity. |
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Pollution, waste, and their associated risks
are just resources (inputs) that are used inefficiently or handled
incorrectly. Enterprises with clean and efficient operations can be more
competitive and profitable.
Good client performance makes for good
financial institution portfolio performance and improves the financial
institution’s bottom line.
Financial institutions that proactively manage for environmental risk
enhance their image in the financial sector and are more likely to attract
funding on the international market. |
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| The IIC can help its partner financial
institutions manage environmental risks by assisting them in:
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developing and implementing environmental risk management
policies and procedures,
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understanding how managing environmental and social risks can
enhance their own portfolios,
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communicating to their clients the business case for improving
operating efficiency and environmental performance and thereby becoming more
competitive in their domestic markets and globally, and
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building their capacity
through the IIC’s environmental management course
for the financial sector.
For related events to this topic visit our Events section
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Useful Links:
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Environmental Risk Management for Financial Institutions Brochure
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