Bank and financial institutions (BFIs) in Cambodia have been shifting their focus from shareholders to stakeholders, incorporating socially responsible behavior by modifying their governance structures. This transition reflects a change from profit-oriented to socially-oriented institutions. There is a growing recognition and emphasis on ESG and sustainability among BFIs in Cambodia. The Royal Government of Cambodia (RGC) has mandated the Code of Bank in Cambodia to regulate the banking and financial sector in a more sustainable manner. Additionally, the Cambodia Sustainable Finance Initiative (CSFI) endorses first Cambodia Sustainable Financing Principles, known as CSFP, to further develop principles that guide BFIs in Cambodia. However, it is important to note that CSFP is more voluntary in nature rather than mandatory. Furthermore, the introduction of Green Bonds in the Cambodian financial market has been observed.

The objectives of this report are to assess the progress made in implementing the recommendations outlined in the 2021 Report and to document examples of good ESG practices in the banking and financial sector in Cambodia. A qualitative approach was employed to gather stories and narratives highlighting the ESG practices among BFIs in Cambodia. Purposive sampling was used to select key individuals and institutions for in-depth meetings and interviews. The National Bank of Cambodia (NBC), the Association of Banks in Cambodia (ABC), ACLEDA Bank, Bank of China (BoC), and various NGOs are among the organizations scheduled for meetings and interviews in September 2022.

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