Training course for the banking sector on environmental impacts

The National Bank of Cambodia (NBC) conducted training on environmental and social risk management and governance to provide knowledge to senior managers of banks and microfinance institutions to understand environmental impact and risk management decisions. ready.

At the end of the program, said the bank’s managing director, Chea Serey, the training focused on building the capacity of officials in the banking sector and the National Bank of Cambodia to better understand the risks of climate change.

“There is a lot of interest in climate change around the world because it affects people’s livelihoods, so the banking sector plays an important role in raising awareness about climate change and its problems,” he said. she declared.

Global warming requires global action and no one is spared, but developing countries with fewer resources to adapt to climate change will be more vulnerable than others. As a small country, we are committed to playing our part, especially in our financial sector, she added.

We look forward to international standard setters providing more guidance and clarity on how these risks should be treated by the market and perhaps combining credit risk and ESG risks into a single rating, as Investors generally give credit rating more weight than others, she said. .

In this environment, the bank, which is the lender, focuses on understanding whether the loan applicant is harming the environment. If this is the case, we do not encourage lending, and if it has an impact on the environment, the bank must take measures to mitigate these impacts.

“It’s just about building the capacity of bank managers to understand that climate change or environmental issues are not the only ones responsible for the environment, we all have a role to play and help reduce climate change” , she said.

Therefore, this training will enable bank officials to begin to understand, discuss and reflect on what the banking industry should do to contribute to the Royal Government’s efforts to reduce climate change, Serey said.

The training was organized by the National Bank of Cambodia in collaboration with the UK to provide additional capacity building training.

Rath Sophoan, vice president of the Banking Association of Cambodia, said the purpose of the training is to establish and implement sound environmental and social risk management, develop and promote sustainable business opportunities. It also helps reduce or avoid environmental and social risks created by private sector lending, he said.

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