Sound ESG makes companies stronger, more efficient and accountable, and supports implementation of good environmental and social and governance practices. The ESG Rwanda Project works with the private sector to achieve these goals by putting in place ESG practices that allow firms to mitigate risk, safeguard against mismanagement and attract investment and capital to fuel their growth. Improved ESG practices also increase access to markets and lower cost of capital, which encourages new investments, boosts economic growth and provides employment opportunities. Firms that operate more efficiently tend to allocate and manage resources more sustainably. Better stakeholder relationships help firms address environmental protection, social, labor and corporate governance issues. ESG practices in the banking sector are nascent. Agri-businesses and housing sectors have weak ESG capacity, practice and systems. Local consultants and intermediaries have low-capacity and ability to provide ESG training and advisory services to support industries. There are no ESG requirements/guidance for the banking sector. With respect to capital markets, the regulator drafted a corporate governance code, with IFC support, and this code needs to be implemented to enhance CG practices, risk management and disclosure. 1. Past Progress. IFC has actively promoted CG in Rwanda during the past few years and witnessed strong overall awareness on the business case for good CG practices. Through the efforts of IFC and others, a foundation for CG has been established, highlighted by the development of CG Code for Issuers to Securities to the market, and a heightened of level of CG awareness events. . 2. Varying Levels of Need. Despite this progress, more is still needed to broaden and deepen the business case for good CG practices and raise awareness on the business case for adoption of good E&S standards, with varying levels of need across the industries in the country. The banking sector’s need for an ESG guideline to enhance financial sustainability and the CMA’s need to implement the CG Code. IFC’s partners the Capital Markets Authority, and the Rwanda Bankers Association will be support to implement the CG code and draft ESG Guidelines respectively.