Central Bank of Egypt Mandates Environmental and Social Risk Management System for Banks by January 2028

The Central Bank of Egypt (CBE) has directed all banks operating in the domestic market to implement an Environmental and Social Risk Management System (ESRMS) by January 2028. This initiative aims to bolster financial and banking sector stability by enhancing banks' resilience through structured frameworks for managing environmental and social risks, including climate-related financial risks, aligning with international best practices. Banks are required to integrate the ESRMS into their sustainable finance policies and broader enterprise risk management frameworks, and appoint a Head of Sustainability or Sustainable Finance Manager to oversee implementation and report progress to the CBE.