Mongolia’s TDBM reaps the rewards of its ESG push
Trade and Development Bank of Mongolia is considered a pioneer in the resources-rich country. Its momentum on sustainability has gained more steam over the years.
Trade and Development Bank of Mongolia has come a long way in its sustainability journey. In 2012, it became the country’s first commercial bank to go all-in on environmental, social and governance principles. A decade later, it is still leading efforts to craft a greener national growth model – and succeeding.
It all began with a partnership with the Netherlands Development Finance Company (FMO) 10 years ago. At the time, the Dutch group guided TDBM in setting up an environmental and social management system to prioritize policies that manage risks and craft products and services.
In 2013, TDBM was the pioneering signatory of the Mongolia Sustainable Finance Association, an initiative of the Mongolian Bankers Association. TDBM led the way in tackling climate change and air, soil and water pollution, as well as human rights abuses.
In 2020, the bank opened a green funding office to develop and implement best practices for raising sustainable financing for projects with international financial institutions. Advisers from the United Nations Development Programme and the Green Climate Fund were pulled into the mix as a result.
In 2021, TDBM was the first bank in Mongolia to seek a second-party opinion for its sustainability policies, liaising with Vigeo Eiris, the ESG unit of ratings agency Moody’s Investors Service.