International Bank for Reconstruction and Development / The World Bank and FIRST Initiative
Climate Impact & Sustainability Data (2015)
Reporting Period: 2015
Environmental Metrics
ESG Focus Areas
- Financial Inclusion
- SME Finance
- Governance
- Risk Management
Social Achievements
- Improved access to finance for SMEs, contributing to sustainable economic development and job creation
Governance Achievements
- Developed principles for the design, implementation, and evaluation of public credit guarantee schemes (CGSs) for SMEs
Climate Goals & Targets
Environmental Challenges
- Market failures and imperfections in SME credit markets (information asymmetries, lack of collateral, high transaction costs, perceived high risk)
- Inadequate funding for CGSs
- Lack of transparency and accountability in CGS operations
- Political influence and interference in CGS decision-making
Mitigation Strategies
- Establishment of independent legal entities with clear mandates and governance structures
- Adequate funding through equity endowments and long-term concessionary loans
- Transparent and risk-based pricing policies
- Independent supervision and rigorous financial reporting requirements
- Periodic performance evaluations and public disclosure of findings