By inducing adoption of Environmental and Social Risk Management Framework
SIDBI, World Bank release a book “Facing the Impact of Climate Change”
Mumbai, (Ajay Rawal) : Small Industries Development Bank of India (SIDBI) and World Bank jointly organized a sensitization programme for senior bankers of the banks (both Public sector and Private sector as also NBFCs) to propagate that Environment & Social-risk Management Framework gets adopted in Credit Delivery Mechanism. SIDBI conducted this programme at Trident Hotel BKC, Mumbai, as part of its endeavor of spearheading the agenda of sustainable and responsible finance, which includes greening of MSMEs by offering not only green loans, but also with equal vigor, pursuing the green development and green rating agenda as well.
On this occasion, a book “Facing the Impact of Climate Change” was released by the hands of Shri N. K. Maini, DMD, SIDBI, & Shri Niraj Verma of World Bank and senior officials of World Bank.
Shri N. K. Maini, DMD, SIDBI, inaugurated the programme and while mentioning about the strategic role of MSMEs. Shri Maini apprised that globally as also in India, MSME sector has shown admirable innovativeness, adaptability and resilience. He stated that paradigm shifts involving Economic-Enterprise Growth to Sustainable-Inclusive Growth; Localised impetus to global alignment; Comparative advantage to Competitive differentiation; call for concerted attention on part of bankers to fund economic development on sustainability parameters. He extended gratefulness to World Bank as also international partners for continuous equipping of SIDBI’s strength for supporting endeavours like these.
Shri Maini apprised that SIDBI has taken various steps for addressing the demand side needs of MSME sector in eco-friendly, energy efficient and self sustaining projects. On the supply side, SIDBI has organized several awareness programmes, workshops, published various sectoral E.E booklets, etc., which have motivated MSMEs on the aspect of energy efficiency and cleaner production, while going for technological advancement. Shri Maini apprised that SIDBI has developed niche in Environment and Energy efficiency financing and shall continue to bridge the gaps in these areas with prioritise attention.
While releasing the book “Facing the Impact of Climate Change”, Shri Maini informed that this initiative is part of GIZ, Germany and SIDBI Collaboration, which lays thrust on fostering responsible competitiveness. This book explores risks and new market opportunities from the perspective of Indian MSMEs. This study suggests suitable frameworks, case studies and policy measures that can be used by MSMEs and policy makers to foster business growth while meeting environmental objectives. The study is backed by few case studies of some noteworthy MSMEs which have either implemented changes to their businesses as a risk management strategy or have created new solutions to improve their competitiveness and meet environmental objectives.
Shri Niraj Verma, (Senior Private sector Specialist) World Bank emphasized the gains of adopting the Environment & Social-risk Management Framework (ESMF). It was put forth that ESMF is aligned to environmental laws and regulations and only requires for conscious recognition of risk and thus acts as a risk mitigant tool. Shri Niraj Verma apprised that SIDBI has piloted this Environment and Social (E&S) Risk Management framework since 2005. Even it has been able to bring in additionality by bringing in partner institutions who have availed refinance.
The programme had technical sessions from Mr. A. Sita Ramakrishna, Environment specialist, World Bank and Mr. Venkat. Social specialist of World Bank alongwith Mr. Mangesh Dakhore, Environmental Expert, SENES Consultants India, Pvt. Ltd. as also SIDBI. They deliberated on roles & responsibilities of Banking Community, introduced the E&S guidelines and its relevance to MSMEs in India. On this occasion SIDBI’s experience in implementation of Environment & Social Risk Management framework was also shared.
