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Nokuthaba Brita Ncube, [email protected]

The Reserve Bank of Zimbabwe (RBZ) has lauded the financial sector for making significant strides in adopting sustainable banking practices amid increasing climate-related risks such as droughts, floods, wildfires, and heatwaves.

With the growing urgency to mitigate climate change, the central bank stressed the need for financial institutions to effectively manage financial risks while actively promoting sustainability.

In its latest 2025 Monetary Policy Statement, the RBZ highlighted that a survey conducted in December 2024 assessed how banks are integrating sustainability into their business strategies, governance frameworks, and internal control systems.

The survey revealed that 56 per cent of banking institutions have successfully incorporated sustainability into their business models, with board members possessing relevant expertise in sustainability, climate risk, or Environmental, Social, and Governance (ESG) issues.

Reserve Bank of Zimbabwe (RBZ)

Furthermore, 32 per cent of banking institutions reported having board-approved sustainable finance policies or frameworks, while others have incorporated sustainability matters into their existing policies.

As of 31 December 2024, 15 out of 19 banking institutions, along with two development finance institutions and one deposit-taking microfinance institution, were undergoing the Sustainability Standards Certification Initiative (SSCI) programme. The initiative, spearheaded by the European Organisation for Sustainable Development (EOSD), aims to align banking operations with international sustainability benchmarks.

“As at 31 December 2024, 15 out of 19 banking institutions, two development finance institutions and one deposit-taking microfinance institution were undergoing the Sustainability Standards Certification Initiative (SSCI) programme being spearheaded by the European Organisation for Sustainable Development (EOSD),” said the RBZ.

The central bank reaffirmed its commitment to working closely with financial institutions to establish a robust, resilient, and inclusive financial system that significantly contributes to sustainable economic development.

The RBZ also mandated all banking institutions to nominate suitably qualified or experienced Board Sustainability Champions and report their selections to the RBZ by 31 March, as part of efforts to enhance governance effectiveness in sustainability.

“In line with the Climate Risk Management Guideline 01-2023/BSD, banking institutions are required to submit their institutional climate risk profiles for 31 December 2024 by 31 March 2025. These reports must clearly outline sectoral and portfolio exposures to climate risks,” said the RBZ.

The move to integrate sustainability in the financial sector aligns with the United Nations Sustainable Development Goals (SDGs) and supports Zimbabwe’s commitments under the Paris Agreement on climate change, signed in 2016.