Staff Writer
The Reserve Bank of Zimbabwe (RBZ) says as of June 30, 2024, 14 banks and one microfinance institution were actively participating in the Sustainability Standards and Certification Initiative (SSCI) programme.
The apex bank said some financial institutions have made good progress toward fulfilment of the certification requirements for the collaborative effort that aims to promote sustainable development within the financial sector.
The central bank underscored the importance of sustainability in the financial services industry, citing the growing global trend towards more responsible banking.
“The increasing magnitude and frequency of climate change and biodiversity loss which continues to threaten global financial and economic stability also highlights the need to enhance the adoption of sustainable banking practices,” the RBZ said in the August Monetary Policy Statement.
The central bank said it is actively working with local banks to implement the Sustainability Standards and Certification Initiative standards, being driven by the European Organisation for Sustainable Development, which are aligned with international best practices.
By encouraging financial institutions to adopt sustainable practices, the RBZ aims to contribute to a more resilient and sustainable economy.
While some institutions have made progress toward fulfilling the certification requirements, the RBZ has emphasised the need for continued efforts to ensure that all participating institutions meet the necessary standards.
Market experts say the successful implementation of the Sustainability Standards and Certification Initiative program will not only enhance the reputation of Zimbabwe’s financial sector but also contribute to the country’s overall sustainability goals.
The central bank said it has established a Climate Risk, Sustainability and Governance Management Committee within its structures in line with the critical climate-related and sustainability issues.
The Reserve Bank said the main mandate of the committee is to set a well-defined and communicated policy and strategy for climate risk management and the adoption and implementation of sustainability standards and environmental, social and governance (ESG) principles.
