Although Mongolia is a mining-driven economy, other important sectors include agriculture/livestock and associated products (cashmere, wool, meat); construction and real estate development; and transportation. Ninety-five percent of investment funding in Mongolia comes from the banking sector. A number of challenges associated with these sectors include air pollution, climate change, and water scarcity, as well as a need for inclusive development. All this amounts to increasing pressure on business and the banking sector to consider ways to balance economic, environmental and social considerations.

Mongolian government agencies, industry players, and financial institutions met in May 2013 at the first Mongolian Sustainable Finance Forum in Ulaanbaatar to discuss how they can work together towards a green civilization for Mongolia.  The Forum was well attended by all major stakeholders in the Mongolian banking industry, including the President's Office, Bank of Mongolia, the Ministry of Environment and Green Development, all 14 Mongolian banks, the Mongolian Bankers' Association, the Banking and Finance Academy, as well as key industry representatives served by the Mongolian banking industry. The participants agreed to establish a Working Group for sustainable finance, to be convened by the Mongolian Bankers' Association, which would work towards a joint declaration on sustainable finance by Mongolian banks.

Link: More about "Sustainable Finance Initiative"

Since then MBA has organized Mongolian Sustainable Finance Forum every year. During Mongolian Sustainable Finance Forum 2017, Government of Mongolia and MBA launched “Mongolian Green Credit Fund” which will finance environmentally friendly projects. Sector guidelines for sectors such as mining, agriculture, construction, and manufacturing are made for banks in order to make better decisions regarding environment-friendly projects.

Mongolian Sustainable Finance 8 principles: