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It is a short, written statement that articulates the financial institution’s commitment to integrating environmental and social considerations into its business activities as well as contributions to sustainable development. It serves as the financial institution’s foundation within which the objectives and procedures of the ESMS are anchored.

The environmental and social policy should be approved and supported by senior management. It may include the following statements and commitments:

There is no standard content for a environmental and social policy. The content should be tailored to the specific objectives of the financial institution, reflecting key environmental and social priorities and concerns as well as the environmental and social standards that clients/investees are required to comply with. The ESMS Officer can start developing an E&S policy by reviewing the financial institution’s portfolio to gain an understanding of the environmental and social risks associated with its financing activities.

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