Sustainable Finance Strategy and Environmental and Social Management System (ESMS) Development

Home Mortgage Bank (HMB) expressed interest in launching sustainable mortgage finance lines in Trinidad and Tobago. The objective of this advisory was to support HMB in addressing client mortgage finance needs with short-term emphasis on social components related to a low-middle income housing social bond and longer-term attention to other sustainable finance products focused on green housing. The advisory was also aimed at supporting HMB in developing both a sustainable finance strategy and an environmental and social management system (ESMS). Econoler was mandated to support HMB in building a sustainable finance strategy to foster the effective implementation of financial solutions for social and green projects in the mortgage market to develop both the green mortgage market and an ESMS.

Under this assignment, Econoler carried out the following tasks:

• Conducted a diagnostic/assessment of the current HMB mortgage portfolio and other products;

• Developed a sustainable finance taxonomy for HMB to label social and/or green loans;

• Designed a methodology to tag and monitor the sustainable portfolio;

• Prepared a sustainable finance strategy and an actionable roadmap;

• Conducted a market study for green housing;

• Supported the creation of green financing lines;

• Conducted technical capacity-building activities for HMB board members, the management team, and employees;

• Developed an ESMS to identify HMB’s exposure to environmental, social, and labor risks associated with its clients;

• Conducted a pilot phase for the ESMS by testing the draft system with clients.

As a result of Econoler’s assistance, HMB gained a better understanding of the green and social financing market in Trinidad and Tobago and received the necessary guidance and deliverables to successfully implement green financing products for sustainable mortgage finance lines.