Published in ADFIAP News, December 1998

The Association of Development Financing Institutions in Asia and Pacific (ADFIAP), founding member of the World Federation of Development Financing Institutions (WDFI) supports the Washington Declaration on Environment and Sustainable Development recently mandated by the members of the various regional development financing institutions (DFIs) comprising WDFI. The declaration pronounces the DFIs’ continuing commitment to environment care and protection as an integral part of sustainable development.

The declaration on the "Greening of DFIs" was formally mandated at the Annual Chief Executive Officer (CEO) Seminar on October 7, 1998, in Washington, DC, which was attend by about 70 CEOs from DFIs in Africa, Asia-Pacific, Europe, Latin America and the Middle East.

ADFIAP Secretary General, Mr. Orlando P. Pena, reporting on his return from the Washington meeting, summarized that the three-part declaration covers the DFIs’ commitment to sustainable development, support to environmental risk management and policies in their institutions, and openness to public and private sector on issues of the environment.

He added that the declaration notes that sustainable-development is a fundamental aspect in sound development bank management. The declaration also recognizes the financial sector as an important contributor towards environmental protection in association with other economic sectors and that sustainable development is a corporate commitment and an integral part of the DFI’s pursuit of good corporate citizenship.

He also said that the DFIs pledged to support prudent approach to anticipate and prevent potential environmental degradation; to integrate environmental considerations into their loan operations and asset management and other business decisions; to assist clients in complying with applicable environmental regulations; and to recognize the need to conduct internal environmental review of their clients on a periodic basis.

ADFIAP Chairman Datuk Mohamad Saleh bin Mohd. Ghazali, who endorsed the initiative, deemed this declaration important in emphasizing the role of DFIs in economic and social development of their respective countries, citing environmental protection as one of the key elements in achieving national development objectives. The pact is in line with ADFIAP’s advocacy of development financing as the key to sustainable development.

The members are also pushing for the holding of dialogues relating to environmental matters in support of the Declaration and in order to share their respective expertise and knowledge. The World Federation consists of more than 500 DFIs around the world covering 105 countries in five continents.