Final answer:
Banks can integrate ESG into lending by conducting safeguard reviews of investments to meet ESG policies and actively financing projects that promote sustainability and biodiversity, using their expertise and engaging with stakeholders.
Step-by-step explanation:
There are two different ways for banks to integrate ESG (Environmental, Social, and Governance) criteria into their lending practices:
- Implementing safeguard review processes for potential investments to ensure they align with ESG policies, such as environmental assessment, treatment of indigenous peoples, and conservation.
- Taking an active role in promoting sustainability through project financing, such as providing technical knowledge, expertise, and facilitating dialogue with governments and stakeholders on biodiversity and environmental projects.
Both of these approaches help banks align their lending activities with sustainable practices while addressing the root causes of biodiversity loss and promoting national sustainable development agendas.