GIZ’s collaboration with the public sector is complemented by, and often directly involves, working with the private financial sector. Partners include commercial banks, non-bank financial institutions, insurance companies, financial industry associations, and data and external review providers.
Aligning strategies and operations with the SDGs and the Paris Agreement
Aligning strategies and operations with the SDGs and the Paris Agreement involves formulating and implementing transition plans. These plans translate an institution’s net-zero or sustainability commitments into specific objectives and actions that can reduce real-economy GHG emissions, providing credibility and accountability.
GIZ offers capacity development and advisory for financial institutions with transition plans and beyond e.g. through the Principles for Responsible Banking (PRB) Academy in cooperation with UNEP FI and The Chartered Banker Institute.
Measuring, managing, and disclosing sustainability-related risks and impacts
The measuring, managing, and disclosing of sustainability-related risks and impacts is important not only for an institution’s own risk management, but also for overall financial stability. Measuring is the first step to provide an understanding of how a financial institution performs in terms of its sustainability management. Global initiatives or networks then provide the frameworks to disclose sustainability-related data in a common language.
GIZ supports financial institutions to measure, manage, and disclose sustainability-related risks and impacts with the help of capacity building measures and advisory services.
Developing sustainable financial products
Sustainable financial products are financial instruments or investment vehicles that incorporate ESG factors in their design and decision-making processes. They aim to align investment with sustainable development, climate, or biodiversity goals.
GIZ assists in the development of sustainable financial products, such as green bonds frameworks or sustainability linked bonds.
GIZ collaborates with other stakeholders that are crucial to scaling up sustainable finance in our partner countries, such as stock exchanges, financial service providers, start-ups, investors and relevant networks and initiatives.