23rd June 2025, Kathmandu
The Nepal Bankers’ Association (NBA), in partnership with Invest for Impact Nepal (IIN), successfully conducted the first in-person meeting of the Community of Practice (CoP) on Sustainable Finance.
NBA Sustainable Finance Integration
This important milestone event aimed to foster collaboration, address key challenges, and accelerate the integration of sustainable finance practices in Nepal’s banking sector.
Promoting Sustainable Finance In The Banking Industry
Launched in March 2025, the Community of Practice (CoP) was established by NBA as a dedicated platform for knowledge sharing, peer learning, and collaborative problem-solving. The initiative supports commercial banks in embracing sustainability by helping them align with global standards and frameworks.
The CoP serves as a knowledge-driven platform where stakeholders exchange best practices and co-develop tools and strategies to address the practical hurdles of implementing sustainable finance systems. This move reflects the growing recognition that sustainable banking practices are essential for long-term financial, environmental, and social resilience in Nepal.
In-Depth Technical Sessions By Global Experts
The in-person session featured technical deep-dives led by two international experts — Dr. Prasad Modak and Ms. Krupa Desai from Environmental Management Centre Pvt. Ltd. (EMC), India.
The first session introduced participants to a variety of sustainable finance instruments and products, exploring the practicalities of their application.
A significant focus was placed on the question: Should sustainable finance be incentivized? The session was enriched with global case studies, providing insights into how different countries and financial institutions have promoted green and inclusive financing mechanisms.
The second session shed light on the importance of Environmental and Social Risk Management Systems (ESRMS) in the banking sector. A draft outline of a standardized ESRMS manual, currently under development as part of the CoP’s knowledge products, was presented. This manual aims to help banks adopt a uniform and effective approach to managing environmental and social risks in their lending portfolios.
Peer Learning And Experience Sharing
A crucial part of the program was the experience-sharing segment, where a CoP member presented real-world challenges and opportunities encountered during the implementation of ESRMS within their institution. This practical perspective enabled other participants to better understand the operational barriers and the potential for innovation in applying sustainable risk management tools.
Following this, a peer exchange session was organized, allowing representatives from commercial banks to discuss their current progress, strategies, and difficulties in integrating sustainable finance and ESRMS practices. This open dialogue encouraged learning from one another and helped banks reflect on both their achievements and the roadblocks that still need to be addressed.
Participation And Industry-Wide Representation
The event brought together senior officials from the sustainable finance departments of all commercial banks in Nepal. Their active participation signaled strong commitment across the industry to advancing sustainability in banking. Discussions revealed that while many banks are at varying stages of ESRMS and green financing adoption, there is a shared willingness to move forward collectively.
Through this forum, NBA and IIN reinforced the importance of industry-wide alignment on sustainable finance practices. By creating a common understanding and toolkit, banks can more effectively respond to national priorities, global environmental commitments, and evolving stakeholder expectations.
NBA’s Continued Commitment
NBA has been proactive in launching a series of initiatives to build the capacity of its member banks in the area of sustainable finance. The formation of the Community of Practice is one of several strategic steps to ensure banks stay ahead in a rapidly evolving financial landscape.
It also helps the sector align with global efforts like the Sustainable Development Goals (SDGs) and climate-related financial disclosure frameworks.
The success of the first in-person CoP meeting demonstrates the growing momentum behind sustainable finance in Nepal’s banking sector. It also underscores the vital role that platforms like CoP can play in shaping the future of responsible banking.
Looking Ahead
The NBA, along with Invest for Impact Nepal, will continue to facilitate regular CoP engagements, introduce more knowledge products, and provide technical support to strengthen sustainable finance frameworks in Nepal. The CoP will serve as a long-term collaborative space for financial institutions, development partners, and regulatory bodies to work together towards a greener and more inclusive financial future.
For more:- NBA Sustainable Finance Integration