The Bank’s sustainable finance objective is to direct investment flow toward projects that clearly generate environmental and social benefits.
In this context, the Bank conducts environmental and social risk assessments for the loans we provide, with the aim of mitigating potential risks for both the Bank and its clients. As a key target, the Bank aims to increase the share of sustainable finance loans to 5 percent of its total loan portfolio by 2030.
As of the second quarter or 2024, loans newly issued under the sustainable finance framework accounted for 2.7% of the Bank’s total loan portfolio.
In implementing our environmental and social policy, Transbank complies with the with the Law of Mongolia on Environmental Protection and other relevant laws, regulations, and guidelines. In addition, the Bank aims to incorporate and adhere to the principles of the following international agreements and protocols in its operations and financial transactions, including:
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- The eight Performance Standards of the International Finance Corporation (here in after referred to as “IFC”);
- The eight Principles of Sustainable Finance issued by the Mongolian Sustainable Finance Association (here in after referred to as “MSFA”);
- Green Investment Principles for the Belt and Road Initiative (GIP).
The Bank does not finance activities included in the “Exclusion List” and the “Watch List” issued under the Sustainable Finance Program.