Gap Analysis of the Green Loan Criteria

TBC Bank as a leading commercial bank in Georgia, committed to sustainable finance and responsible management of environmental and social (E&S) risks. requested support to implement a brief follow-up assignment to GGF TAF project Green Lending Development, implemented with the involvement of the Consultant Kommunalkredit Public Consulting (KPC). 

This short follow-up assignment will focus on conducting a gap analysis between the green loan criteria in TBC Bank’s Green Loan Validation and Calculation Tool (the “Tool”) and Green Loan Guidelines (“Guidelines”), developed as part of the above project, and the technical screening criteria presented in the National Bank of Georgia’s (NBG) Sustainable Finance Taxonomy, which was approved in 20221. The short follow-up assignment will also focus on delivering capacity building trainings for TBC Bank’s core personnel working on green finance and ESG topics.

This follow-up support is critical for TBC Bank, as it will allow the Bank to understand – and where applicable, enable it to address - the gaps between TBC and NBG approaches, increase its capacity in implementing NBG’s Sustainable Finance Taxonomy, and enhance green lending.

Type of Services provided:

• Conduct a gap analysis between the green loan criteria in TBC Bank’s Tool and Guidelines, developed as part of GGF TAF Project No. 10/2019, and technical screening criteria in NBG’s Sustainable Finance taxonomy.
• Describe (e.g., in form of an additional column in TBC Bank’s Tool, or in another suitable format agreed with TBC Bank) if each green loan category in TBC Bank’s Tool and Guidelines is aligned with NBG’s Taxonomy, or if there are any gaps. The identified gaps will be described in detail by the Consultant.
• Design recommendations for TBC Bank on how to address the gaps for existing green loan categories and, if needed, additional criteria/categories in line with NBG Taxonomy into TBC Bank’s Tool and Guidelines.
• Conduct 1 workshop for TBC’s green finance staff on the gaps between NBG and TBC Bank’s approaches to green loan criteria.

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