In January 2017, South Africa’s National Treasury convened a Working Group of financial sector regulatory agencies and industry associations to develop a framework document on sustainable finance.
This followed round table discussions involving some 50 stakeholders in June 2016.
On 15 May 2020, drawing on the Working Group’s inputs, National Treasury published a Technical Paper for public comment on “Financing a Sustainable Economy”.
The objectives of the paper are to
- Define sustainable finance for all parts of the South African financial sector including banking, retirement funds, insurance, asset management and capital markets.
- Take stock of the global and national financial sector policy, regulatory and industry actions taken to date in dealing with environmental and social (E&S) risks and opportunities.
- Identify market barriers to sustainable finance and the implementation of E&S risk management best practices.
- Identify gaps in the existing regulatory framework and recommend actions required of regulators, financial institutions and industry associations.
- Enhance financial stability through better understanding of E&S factors, including the concept of a just transition.
- Make recommendations for implementing sustainable finance in South Africa through regulatory and industry actions
The Working Group consisted of representatives from the following organisations:
- South African Reserve Bank
- Financial Sector Conduct Authority (FSCA)
- Prudential Authority (PA)
- Department of Environment Affairs (DEA)
- The South African Insurance Association (SAIA)
- The Banking Association of South Africa (BASA)
- The Association for Saving and Investment South Africa (ASISA)
- The Johannesburg Stock Exchange (JSE)
- Batseta – Council for Retirement Funds of South Africa
The initiative is supported by IFC, part of the World Bank Group, in partnership with the Swiss State Secretariat for Economic Affairs (SECO).