The demand for products and services offered by financial institutions (FIs) that are in line with global environmental and social demands is increasing. Green Financial Products (GFPs) refer to products and services offered by FIs that, in addition to contributing to regulatory compliance, generate a positive environmental impact by channeling resources to businesses with a special focus on sustainable development.
As part of its focus area on impact and sustainability, the eco.business Development Facility (EBF DF) seeks to guide its Partner Institutions (PIs) in the development of their sustainability strategy. The initial step in this process is the design of an Environmental and Social Management System (ESMS). Once completed, the design and implementation of GFPs allows PIs to expand their environmental and social strategy beyond mitigating risks and opening new business opportunities and attracting new clients.
In Ecuador, the EBF DF has been working with Banco Guayaquil in the implementation of a GFP in the shrimp and banana sectors. The product will enable producers to get access to credit of up to USD 100,000 to finance energy reconversion projects. In Panama, the EBF DF has just started the implementation of a GFP in the agricultural sector. This product builds on the insights that were gained from a eligibility assessment that was conducted with 130 clients of Global Bank in the cattle and coffee sectors, evaluating their eligibility for receiving sustainable agriculture financing.
Click here to receive more information on how to design a Green Financial Product. The Sustainability Academy has also published a report on the context of GFP in different countries and financial institutions across Latin America and the Caribbean.