Egypt’s CIB entered into a partnership agreement with the International Finance Corporation (IFC) to jointly develop a climate risk management framework for the bank, according to a statement released last week.

The details: The IFC advisory project will see both sides work on developing a screening and testing mechanism against climate risk to ensure the Egypt-based bank discloses any climate-related financial risks in its portfolio, ensuring CIB’s regulatory compliance on climate action, the statement notes.

Why is this important? “Climate-related financial risks are increasingly becoming more relevant for financial institutions … IFC's partnership with CIB will further enhance the Bank's process of integrating the climate-related risks into the existing risk management framework, as well as to support aligning with the evolving international standards,” CIB's Chief Risk Officer Talha Karim notes in the statement.

IFC’s been backing CIB’s green moves: IFC subscribed to the full issuance of CIB’s first USD 100 mn noncallable, five-year, fixed-rate corporate green bond back in 2021. CIB also developed the first credit line dedicated to certified green building in North Africa with support from the IFC, the statement notes.

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