Sustainability Awarded Review and Upgrade of Khan Bank’s Environmental and Social Risk Management System

As a result of long-term syndicated loan facility requirements, Khan Bank are conducting a review of and implementing improvements to its existing Environmental and Social Risk Management System (ESMS) in order to align the system with the 17 goals of the UN’s 2030 Agenda for Sustainable Development. The 2030 Agenda aims to wipe out poverty by placing the world on a more sustainable economic, social and environmental path. The 17 Sustainable Development Goals feature 169 targets to be met by the year 2030 in a range of areas, such as health, gender equality, economic growth, and climate action.

In March 2019, Sustainability was awarded a consulting contract to carry out this work and has assisted Khan Bank in assessing, mitigating, documenting, and monitoring impacts and risks associated with financing and investment to meet the 2030 Agenda requirements.

Since being awarded the contract, Sustainability has accomplished the following:

  • Identified best practices for the assessment and management of environmental and social risks for potential financing and investments;
  • Reviewed and provided recommendations to update all related plans, procedures, and policies within the existing ESMS to comply with international standards and local laws;
  • Aligned the ESMS with the sustainability framework and principles of the International Finance Corporation’s guidelines; and
  • Provided training to Bank staff for the new ESMS processes and IFC requirements.

This scope of work is expected to run through to Q1 2020.

Sustainability is proud to support Khan Bank’s commitment to applying international environmental and social standards to its banking practices in Mongolia and to help the Bank reach its sustainable development goals.

About Khan Bank:

Khan Bank was established in 1991 and is the largest commercial bank in Mongolia. Khan Bank has remained the most accessible and trustworthy commercial bank in communities across the vast territory of Mongolia, delivering 24/7 banking products and services to 70% of all Mongolian households. Embracing the advent of information technology, Khan Bank was one of the first businesses in the market to introduce ATMs, mobile banking and many other products transforming traditional banking models to technology-based digital banking.