4
SDGs & SOCIALLY RESPONSIBLEÂ FINANCE (SRF)
1. INTRODUCTION As stewards of the financial system, central banks can play a critical role in a nation’s plans to achieve the Sustainable Development Goals (SDGs). One of their key responsibilities is in shaping debate on the nature of sustainability, using their expertise to develop and apply the principles of socially responsible finance (SRF). This document explores financial practices that foster inclusive growth while emphasizing the importance of social and environmental ethics. Bringing these principles to the foreground of policy debate puts the economy on a more sustainable growth trajectory, which is vital for the wellbeing of future generations.
The SDGs must be translated into meaningful debate and legislation. We are committed to reinforcing the nation’s social and economic fabric and are mindful of how policies that are designed to mitigate environmental damage may have an effect on central bank objectives. This paper opens with a discussion of the SDGs, giving an overview of the scenario in Bangladesh and highlighting the challenges that are pertinent to sustainable financing in low-income countries. Within the context of the development goals, we then provide a more detailed definition of SRF, examining the role of financial institutions. Finally, we look for lessons on best practices in fellow emerging economies, as well as high-income countries, to ensure that we have a robust national strategy that underpins sustainable growth.
A man is sitting in front of his shop in a small street at sunset moment, Rangamati, Bangladesh. September 2013. (Photo by: Tarzan9280/iStock)