Nepal Bankers’ Association ESG Masterclass: Sustainable Finance for Bank Boards
19th May 2025, Kathmandu
The Nepal Bankers’ Association (NBA) organized a groundbreaking Sustainable Finance Masterclass tailored specifically for the Board Members of its member banks. Held at a critical time, the event aimed to deepen the understanding of Environmental, Social, and Governance (ESG) principles at the highest levels of banking leadership.
Nepal Bankers’ Association ESG Masterclass
This first-of-its-kind session marks a significant step toward advancing sustainable banking practices in Nepal.
Responding to Global and National Priorities
The masterclass comes amid growing global and national attention on sustainable finance. In Nepal, regulators are pushing for more responsible banking practices. The NBA seized this opportunity to strengthen the leadership capacity within banks, ensuring that board members are better prepared to align with sustainability goals.
NBA’s Commitment to Sustainable Finance
Delivering the opening remarks, NBA President Santosh Koirala emphasized the urgency of embedding ESG principles in Nepal’s financial sector. He highlighted the NBA’s ongoing efforts to build capacity and awareness through specialized programs.
Mr. Koirala noted that the leadership of board members is critical in driving long-term sustainability in banking. “Without strong direction from the top, we cannot expect meaningful changes on the ground,” he said.
He also stressed the importance of aligning banking operations with national priorities and regulatory guidelines on sustainable finance.
Insights from Global Experts
The masterclass featured two esteemed professors from the UPF Barcelona School of Management (BSM). They delivered focused sessions on the key pillars of sustainable finance—Social Risk Management and Governance.
Addressing Social Risk in Lending Practices
Prof. Dr. Andrei Boar, Head of the Business Strategy and Management Department at BSM, led a detailed session on Managing Social Risk in Sustainable Finance.
He explained how social risks, such as inequality, labor rights, and community impact, are often overlooked in banking. He emphasized that addressing these risks is not only a regulatory obligation but also a business necessity.
Dr. Boar introduced several frameworks that banks can use to identify, assess, and mitigate social risks. He encouraged the board members to integrate social risk evaluation into their lending and investment decisions.
“Social risks can significantly affect a bank’s reputation and long-term performance. Being proactive in this area is vital,” he said.
Strengthening Governance for Long-Term Impact
The second key session focused on Governance and Sustainable Finance and was delivered by Prof. Dr. Marcos Eguiguren Huerta, Associate Provost and Secretary General at BSM.
Dr. Eguiguren underlined governance as a cornerstone of sustainability. He stressed the need for ethical leadership, transparent decision-making, and strong accountability mechanisms within banks.
He noted that good governance goes beyond compliance. “It builds trust among stakeholders and ensures long-term success,” he said.
He urged board members to take an active role in establishing governance structures that support sustainability.
A High-Level Gathering of Nepal’s Banking Leaders
More than 45 senior leaders from member banks attended the program. This included Chairpersons, Board Members, and Chief Executive Officers.
The participation level reflected the sector’s growing commitment to sustainable finance and the willingness of top leadership to engage in strategic learning.
A Milestone for ESG in Nepal’s Banking Sector
The successful hosting of this masterclass marks a new chapter for the NBA and the broader financial community. It sends a strong message about the role of leadership in shaping a sustainable future.
Through knowledge-sharing, global insights, and active board-level involvement, the NBA aims to accelerate the adoption of ESG frameworks across the banking industry.
Way Forward
With increased pressure from regulators, investors, and communities, sustainable finance is no longer optional. The NBA’s initiative lays the foundation for further action, policy alignment, and industry-wide change.
The association plans to continue such capacity-building programs in the future, targeting different leadership levels within banks.
By equipping board members with knowledge and practical tools, the NBA hopes to mainstream ESG considerations in banking decisions, from strategy to operations.
Conclusion
The Sustainable Finance Masterclass showcased the NBA’s proactive leadership in sustainability. It highlighted the crucial role of governance and social responsibility in shaping Nepal’s financial landscape.
By engaging top-level decision-makers, the program set a precedent for how Nepal’s banking sector can embrace responsible finance and lead by example.
For more: Nepal Bankers’ Association ESG Masterclass
