Please click on the links below for more information on the SUSREG Tracker and underlying framework:
Why was it developed?
The climate and environmental crisis we are facing is accelerating, and the financial sector must fully play the critical role it has in enabling the transition to a low-carbon, resilient and sustainable economy. For this to happen rapidly, at scale and in a harmonized manner, the mobilization of central banks, financial regulators and supervisors is crucial.
Building on its experience of working with a wide range of financial sector stakeholders, WWF has developed a framework to assess the integration of environmental & social considerations in regulatory and supervisory practices, as well as in central banking activities and other measures that support the redirection of financial flows towards more sustainable practices.
The main objectives of the SUSREG Tracker and underlying framework are to:
- Reflect fast evolving practices and thinking on the role of central banks, financial supervisors and policymakers in greening the financial system;
- Provide a practical tool and assessment framework, acting as a roadmap for a sustainable financial system;
- Provide a user-friendly platform to allow comparisons of the regulatory environment related to sustainable finance practices across countries and regions, driving harmonization of practices.
With this tool, WWF aims to facilitate knowledge sharing between institutions, offering a simple way to build on existing good practices and improve understanding of how climate-related and environmental risks can be integrated in central banks’ and financial supervisors’ activities.
Who can use the SUSREG Tracker?
The assessment framework, and the associated country-specific results, can be used by:
Central banks, financial supervisors and policymakers can:
- Strengthen regulatory and supervisory practices by integrating E&S considerations in banking regulations and guidelines, as well as in monetary policy operations;
- Benchmark themselves against peers in key markets worldwide and align with best practices.
International financial standard-setters and initiatives can:
- Benefit from independent, regularly updated assessments and annual reporting on progress;
- Build on the framework to establish roadmaps for integrating E&S considerations in global financial regulations and central bank activities;
- Benefit from the science-based perspective of WWF on best practices regarding the integration of climate-related and environmental risks.
Commercial banks (and institutional investors) can:
- Understand the differences in the regulatory and monetary policy frameworks in the countries in which they operate (and those affecting the banks in their portfolio);
- Support and inform their engagement with government entities and policymakers (and with banks in their portfolios).
Academics, think-tanks, other non-governmental organizations can:
- Better understand the differences in the regulatory and monetary policy frameworks in key countries worldwide;
- Assess the degree of integration of various environmental & social issues in financial regulation and central bank activities, and track progress.
Methodology & scope
The SUSREG framework is intended to provide practical guidance on the integration of environmental & social considerations in financial regulations, supervisory expectations and monetary policy.
More specifically, the SUSREG framework:
- Builds on current best practices and ongoing developments in the regulatory landscape;
- Reflects the work and recommendations issued by the Network of Central Banks and Supervisors for Greening the Financial System (NGFS);
- Integrates and references leading frameworks and initiatives such as the Taskforce on Climate-related Financial Disclosures (TCFD);
- Benefits from WWF’s own experience in working with central banks, financial supervisors and policymakers worldwide, and its participation in leading sustainable finance initiatives;
- Capitalizes on WWF’s science-based conservation expertise, crucial to align financial portfolios with planetary boundaries, international agreements and sustainable development goals.
While the development of the SUSREG framework has been led by WWF-Singapore, it has benefited from the support of WWF sustainable finance experts in other key national offices globally.
At various points in the development of this framework, WWF sought feedback from a broad range of external stakeholders, from academia and think-tanks to financial supervisors and central banks, whom we would like to thank for their valuable contributions.
Note: the first section of the SUSREG framework currently focuses on banking supervision. In the future, it will be expanded to cover other key parts of the financial system, such as capital markets, asset management and insurance.
The assessment framework is comprised of 68 indicators structured around three key pillars, covering the various aspects of banking supervision and central banks’ activities, as well as the creation of an enabling environment for sustainable finance.
This section covers the various tools and measures that banking supervisors can use to ensure both the safety and soundness of individual banks and the financial system stability, with regards to environmental & social risks. It also includes measures that supervisors themselves can take to show leadership and better understand these risks and their implications for the financial sector.
- Micro-prudential supervision (supervisory expectations)
- Micro-prudential supervision (rule-based)
- Disclosure & transparency
- Macro-prudential supervision
- Leadership & internal organization
This section covers the various measures that central banks can take to address environmental & social risks, in keeping with their key mandates of ensuring money supply and price stability. It also includes measures that central banks themselves can take to show leadership and better understand these risks and their implications.
- Monetary policy (conventional and unconventional)
- Own portfolio management
- Leadership & internal organization
This section covers several measures that would be key for the financial sector to fully support the transition to a low-carbon, resilient and sustainable economy. Some of these measures may be outside the remit of central banks or financial supervisors.
- Multi-stakeholder initiatives
- Taxonomies for (un)sustainable activities
- Standards for financial products, incentives, carbon pricing, etc.
The assessment of a specific measure against the relevant SUSREG indicator(s) will result in either a positive, partial or negative score. In addition, the results will clearly display the scope of the measure assessed: either only applicable to climate-related risks, to both climate-related and environmental risks, or to the entire range of environmental & social risks.
The assessment currently covers 39 countries and the European Union, covering around 90% of global GDP. This selection reflects the composition of the Basel Committee on Banking Supervision (BCBS), and is complemented with countries important to WWF’s sustainable finance work.
Current geographical scope
|Canada||European Union||Norway||China||South Korea|
|Colombia||Germany||Saudi Arabia||India||Viet Nam|
|Costa Rica||Greece||South Africa||Indonesia|
|Luxembourg||United Arab Emirates||New Zealand|
In italic: not part of the BCBS (as member or observer)
In performing the assessments, WWF takes into considerations the following (non-exhaustive list):
- Regulations and guidelines issued by the financial regulators or supervisors, as they pertain to sustainable banking practices;
- Measures and activities implemented by the central bank (in particular those related to monetary policy), in line with their mandate;
- Measures taken by central banks, banking regulators or supervisors, or other policymakers, to create an environment conducive to the development of sustainable finance.
Important note: in the absence of regulations or guidelines issued by the financial regulator and pertaining to sustainable banking, WWF may take into considerations relevant guidelines issued by the banking association, when available. When supported by the financial supervisor, the implementation of such guidelines can be an important driver of change among commercial banks.
Listing rules or sustainability reporting guidelines issued by securities commissions or stock exchanges are not taken into account in this assessment. The current focus is on regulations and guidelines pertaining to the banking sector, and these rules or guidelines are typically not specific to banks, and would not cover non publicly-listed banks.
The assessment only takes into account information that is publicly available, through official websites or in relevant news articles and publications.
For countries where English is not an official language, WWF will endeavour to use official documentation available in the national language. Alternatively, in the absence of an official translation of the relevant documentation, an unofficial translation may be procured to facilitate the assessment.
Before the final assessment results are published on the website, preliminary results will be shared with the relevant institutions (e.g. regulators, supervisors, central banks) to ensure the information identified is complete and accurate.
The assessments will be regularly updated, as and when necessary to reflect evolutions in regulatory frameworks and other relevant measures adopted by central banks, banking supervisors and policymakers in the countries covered.
You will find below a list of reports and guidance published by WWF in relation to the SUSREG framework and tool.
Introducing SUSREG – A Framework for Sustainable Financial Regulations and Central Bank Activities (April 2021)
Developed by WWF as part of the Greening Financial Regulation Initiative (GFRI), the SUSREG framework aims to provide a practical roadmap for central banks, financial regulators and supervisors, as well as relevant policymakers, to enhance the financial sector’s stability and resilience to climate-related and other environmental & social risks, while enabling the mobilization of capital for the transition to a low-carbon, resilient and sustainable economy.
Please click on this link to download the report.
Sustainable Banking Regulations in ASEAN – Raising the Bar (December 2019)
This report presents the results of an assessment of sustainable banking regulations and guidelines issued by regulators or banking associations in key ASEAN countries and in China, based on a subset of the SUSREG framework. The report also assesses how banks headquartered in these countries perform against these expectations.
Please follow the links for the report and the press release.
WWF has worked with the finance sector for more than a decade via innovative collaborations that strive to integrate environmental & social risks and opportunities into mainstream finance so as to redirect financial flows to support the Paris Agreement and the UN Sustainable Development Goals. Our approach to sustainable finance leverages:
- Our conservation experience on the ground across WWF’s global practices;
- Our partnerships with companies on key issues such as climate, energy, food and water to drive sustainability;
- Our participation in cutting-edge sustainable finance initiatives (e.g. Science Based Targets initiative and the European Commission’s Technical Expert Group on Sustainable Finance).
This has allowed us to strengthen lending and investment criteria for key industry sectors, provide insights and data on environmental and social risks, fulfil critical research gaps, help unlock innovations in sustainable finance products and convene key stakeholders to progress the sustainable finance agenda.