Building Sustainable Business Practices: Introduction to the Environmental and Social Management System (ESMS) for Financial Institutions
An Environmental and Social Management System (ESMS) is a set of policies, procedures, tools, and internal capacity to identify and manage a financial institution’s exposure to the environmental and social risks of its clients/investees. ESMS is a cornerstone of sustainable finance process as it helps financial institutions properly consider the environmental and social aspects when making investment decisions.
The session explored relevant procedures for identifying, assessing, and managing environmental and social risks of financial transactions. It also provided guidance on how to screen transactions based on their environmental and social risks, conduct environmental and social due diligence, and monitor clients’/investees’ environmental and social performance.
The webinar showcased Banca Transilvania’s (Romania) successful ESMS incorporation, providing insights into its implementation, lessons learned, and its role in supporting the green transition and the EU compliance.
Webinar recording in English
Webinar recording in Russian (simultaneous translation)
Caroline is IFC’s Regional ESG Advisory Lead for Europe, Central Asia and Middle East and Pakistan. Caroline oversees ESG advisory work that IFC delivers in the region, ensuring alignment with IFC’s ESG standards: the environmental and social Performance Standards and corporate governance methodology.
Caroline joined IFC in 2008 as Project Manager of the Azerbaijan Corporate Governance Project, and then led IFC’s global portfolio of Corporate Governance advisory projects. She played a key role in the conceptual development of IFC’s Integrated ESG advisory program.
Prior to IFC, Caroline worked with a variety of businesses and financial institutions in transition economies, with focus on strategic development, MSME banking, and improving risk management. She has served on several supervisory boards of micro finance institutions in Eastern Europe.
She has a BA from the University of London and an MBA from Henley Management College where she specialized in corporate responsibility, project management and corporate governance.
Evgenia, PhD, is a Senior Environmental and Social Consultant working with financial institutions. She has 18-year experience in the field of environmental, occupational health and safety risks management being involved into projects in banking sector and other industries. At IFC Evgenia was involved in 100+ investment and ESG Advisory projects with financial institutions across the region.
Prior to IFC Evgenia worked as a Deputy Head of Sustainable Finance at Vnesheconombank (VEB) and was responsible for the development and roll-out of an Environmental and Social Management System. She has gained a vast E&S experience by providing consultancy services for companies in different sectors during her work at international consultancy company – Environmental Resources Management (ERM) and conducting State environmental expertise of investment projects at the Federal Service for Environmental, Nuclear and Technological Supervision.
Petronela is a senior banking professional, with 20 years’ experience in corporate and project finance, with expertise in complex transactions in various sectors: Energy, Health & Care, Construction, FMCG.
In recent years, as part of the sustainability team of BT, she has played an active role in implementing the ESMS system, developing a sustainable finance framework within the Bank and ensuring compliance with the EU regulatory provisions. She is an ESG advocate and holder of the CFA Certificate in ESG Investing.
Gabriela has over 25 years of experience in the banking sector, with a professional background as an energy engineer. In recent years, she has focused on ESG analysis of financed activities, ensuring that the projects meet sustainability criteria.
Additionally, she has been responsible for implementing an internal environmental management system at ProCredit Bank, aimed at aligning the bank’s operations with global sustainability standards. Her expertise bridges the gap between finance and sustainable energy development, contributing to Romania’s shift to green energy solutions.
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