Report on the State of Sustainable Finance in the LAC Banking Sector

With the aim of assessing progress in the banking sector in Latin America and the Caribbean (LAC) on sustainability-related issues, this document presents the results of the survey “The State of Sustainable Finance in Banking in Latin America and the Caribbean”, commissioned by IDB Invest in collaboration with HPL.LLC and Pulsar Tech Consulting.

This document was prepared by HPL based on the responses received during the survey administration phase. The aim of this survey is to understand the current situation and evolution of sustainable practices in the banking sector of Latin America and the Caribbean (LAC), thereby identifying areas for improvement and contributing to progress towards a more sustainable financial industry in the region.

The survey was sent to 238 banks out of the more than 550 operating in the region, yielding 102 responses across the 23 countries, plus a further three responses based on desk research. With approximately 20% of the region’s banks represented, and covering on average 37% of the assets of each banking system, this survey offers a comprehensive overview of sustainable finance in the region. However, it is important to note that it does not cover the entire sector.

The survey revealed an overall average progress rating of “Medium” for the Latin America and Caribbean region. This result helps to identify specific areas for improvement and underscores the need to consolidate the region’s ongoing commitment to sustainable finance.