Source context — In September 2024, IFC and the Central Bank of Iraq announced work on environmental and social risk guidelines for banks, alongside a Sustainable Finance Roadmap for 2023–2029 and an ESG Code. The announcement sets out intended improvements to the sector; it does not show how every bank now applies them.
Our analysis — Enterprise preparation can start with a simple inventory of material operating risks. Depending on the business, relevant evidence might include energy and water records, worker safety procedures, waste handling and responsibility for corrective action. The purpose is to make management practices visible and testable.
Advisers should first ask a prospective lender what it actually requires. A generic reporting package can consume scarce management time without resolving the financing question. Focus on the business’s material risks, the lender’s documented expectations and improvements that can be maintained after advisory support ends.
A sustainability plan should sit beside sound financial records, realistic demand and an affordable repayment structure. It does not substitute for them. Programs should measure adoption and closure of identified gaps separately from any subsequent lending decision.