The momentum to embed Environmental, Social, and Governance (ESG) principles into the DNA of financial institutions has never been stronger. And nowhere is this more critical than in the world of development finance, where mission-driven institutions play a pivotal role in shaping sustainable futures. Recognizing the urgency—and the opportunity—the Investment Climate Reform (ICR) Facility, rolled out an engaging Peer-to-Peer (P2P) Capacity Building Series in March and April 2025.
The goal? To empower Development Finance Institutions (DFIs) across Africa, the Caribbean, and the Pacific with insights, tools, and to spark peer experiences needed to mainstream ESG into every facet of their operations.
Peer Learning, Tailored for Real-World Impact
What set this series apart was its design: five high-impact thematic sessions delivered to two distinct regional cohorts: one for African DFIs and one for Caribbean/ Pacific DFIs. This format created space for contextualized discussion—where local realities met global ESG frameworks—and allowed participants to dive deep into shared challenges and unique regional opportunities.
The sessions spanned the full ESG journey:
- Introduction to ESG & the Role of DFIs – Framing the “why” behind ESG.
- ESG Assessments – Understanding where you stand and where to improve.
- Embedding ESG Principles – Making ESG part of the institutional DNA.
- Innovative Financing for ESG Outcomes – Leveraging capital for climate and social goals.
- Monitoring & Reporting ESG Performance – Ensuring transparency, accountability, and continuous improvement.
Participants brought real-life examples, honest questions, and ambitious ideas to the table.
Unpacking the Insights: What DFIs Are Saying
The sessions sparked vibrant discussions, revealing common themes and actionable insights.
- ESG Buy-In Is Everything
Across the board DFIs agreed: ESG integration only works when everyone is on board. Whether it’s sceptical senior staff, overburdened middle managers, external partners or clients stuck in old paradigms—resistance to change is real.
But so are the solutions. Participants emphasized:
- Making the business case for ESG through impact and performance data
- Leadership advocacy to model ESG commitment from the top
- Cross-functional capacity building to break silos
- Using evidence, storytelling and transparency to bring stakeholders along
One participant summed it up: “ESG is not a compliance box—it’s a culture shift.”
- The Data Dilemma—and the Digital Opportunity
Data is the lifeblood of ESG. Yet for many DFIs, getting the right data—consistently, and at scale—remains a major challenge.
Participants called out persistent issues:
- Limited access to standardized ESG data
- Gaps in data collection and analysis capacity (additional costs needed for those)
- Fragmented or incompatible reporting frameworks
But there was also optimism. The role of digital innovation—from AI to ESG management platforms—featured heavily in discussions. Participants explored how smart tools can support everything from real-time impact tracking to portfolio-level ESG risk analysis.
- Building Internal Capacity Is Non-Negotiable
The need for institutional ESG expertise surfaced as a core priority. While consultants can jumpstart ESG processes, long-term success hinges on in-house capacity.
Peer exchanges revealed several forward-thinking approaches:
- Creating ESG focal points or units within institutions
- Designing flexible learning pathways for staff across departments
- Integrating ESG into client engagement and due diligence
- Supporting partner financial institutions to adopt ESG practices
The spirit of shared learning was palpable. From seasoned ESG champions to those just beginning the journey, participants found value in the open, non-judgmental dialogue. One Caribbean DFI leader noted: “We’re not just learning best practices—we’re building a community of practice.”
A Growing Movement
This event, organised in partnership with Momentus Global and facilitated by ESG expert Sally Yacoub was a spark for authentic integration—one that positions ESG not as a trend, but as a strategic imperative for DFIs aiming to drive inclusive, sustainable development.
The overwhelmingly positive feedback from the series’ participants is a testament to the power of peer-to-peer learning. When institutions come together to share not just their successes, but their struggles and questions, real progress happens.
Whether it was the candid exchange of ESG assessment tools, the brainstorming on financing models for climate resilience, or the questions about materiality and stakeholder alignment, one thing was clear: this cohort of DFIs are ready to lead—and to learn from each other.
As ESG continues to reshape the financial landscape, platforms like this P2P series offer more than knowledge—they offer a network and momentum. Momentum toward a future where every financial decision is also a decision for people, planet, and prosperity.
