Fair Finance Cambodia (2018-2022)
Financial institutions should prioritize environment, social and governance (ESG) criteria in their funding decisions, to promote sustainable development and foster the well-being of society. Photo: Oxfam
Over the last decades, Asia has witnessed rapid economic growth which has contributed significantly to poverty reduction. Foreign direct investments and the banking sector have largely filled financing needs for this fast pace of development. However, negative impacts on environment and society were also observed, which could undermine sustainable developments.
Financial institutions – such as banks and investors – can potentially play a big role in enabling social and environmental change by driving capital towards companies that are creating long-term value for societies, and away from projects which pose excessive social or environmental risks.
Grounded on this vision, Fair Finance Asia (FFA) project aims toward creating a more sustainable banking sector in Asia where banks are more transparent, accountable, and adhere to standards on human rights standards and environmental, social and governance critaria. Adopting these standards would help to reduce negative impacts from bank investments, which would in turn contribute to sustainable financial sector development.
Fair Finance Cambodia is a platform, under the banner of the regional Fair Finance Asia initiative being implemented in seven countries, by civil society organizations working in Cambodia to promote sustainable finance in the country.
The FFC will focus on engaging with stakeholders to create a self-sustained mechanism for responsible financial sector through the following approaches:
- Strengthen CSOs’ capacity in contributing to the promotion of responsible finance.
- Facilitate awareness raising among the public on responsible finance.
- Increase awareness and political will among government agencies, regulators, banks, and banking associations to be more adherence to responsible and sustainable finance standards
- Support key stakeholders to assume leadership in developing appropriate policies and regulatory initiatives that will improve social and environmental performances of banks.
- Facilitate a CSO and private sector-led platform on Cambodia’s Financial Outlook and Prosperity that brings together influencers, investors, decision makers, and affected communities to build common understanding.
Learn more about Fair Finance Asia: https://fairfinanceasia.org/us