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Advocacy for IGF
POLICY TOOLS OF AN IGF FRAMEWORK
THE SIX BUILDING BLOCKS MAY BE ASSEMBLED IN THE PROPER ORDER USING A VARIETY OF POLICY TOOLS. THE MOST IMPORTANT FOR ACHIEVING THE PRECONDITIONS FOR AN IGF FRAMEWORK ARE:
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ADVOCACY FOR IGF
CAPACITY BUILDING FINANCIAL INCENTIVES
VOLUNTARY STANDARDS MANDATORY REGULATIONS
ADVOCACY FOR IGF
Multiple options around advocating for IGF were laid out in the AFI’s “Promoting IGF initiatives and policies” report.53
On the one hand, relevant tools include those of external advocacy for IGF through press releases, progress reports, ministerial and regulatory speeches, surveys, participation in working groups, technical roundtables, etc. On the other, tools of internal advocacy for IGF within the financial institution or regulator include: (1) the creation of specific financial inclusion or sustainable finance departments, (2) national or regional coordination through working groups, expert circles, workshops (for instance, on specific IGF policies), and conferences.
Activities to support the implementation of IGF policies and initiatives, such as ongoing revisions of frameworks, measurements of performance and changes to strategy should be widely publicized, and each should be based on a broad consultation with stakeholders.
THE THAI BANKERS ASSOCIATION’S SUSTAINABLE BANKING GUIDELINES
The Thai Bankers Association, in cooperation with the Bank of Thailand (BoT), launched the “Sustainable Banking Guidelines” in 2019, which arose from an industry-led initiative supported by the BoT.
The guidelines define responsible lending for all Thai banks and were supported by the BoT, which also encourages banks to internalize ESG risks. The responsible lending approach includes material ESG issues and encourages members to establish effective internal controls along with transparent disclosures in line with internationally accepted concepts of ‘double materiality’ consistent with the notion of sustainable finance laid out in this special report: climate change is part of environmental, and financial inclusion part of social risks. The guidelines have been endorsed by the Association of International Banks.
Source: TAlliance for Financial Inclusion. 2020. “Inclusive Green Finance: A Survey of the Policy Landscape.”
