This Monograph is part of a technical coopera tion program, developed by the Capital Markets and Financial Institutions Division (CMF) of the Institutions for Development Sector (IFD) of the Inter American Development Bank (IDB). It aims to show case the importance of managing environmental and social risks and opportunities for sustainable devel opment banking in Latin America and the Caribbean (LAC). The objectives of the publication are to (i) illustrate the growing importance of global sustainable financing; (ii) present how environmental and social risks and opportunities are being integrated by national development banks (NDBs) in LAC; and (iii) outline the costs and benefits of preparing and implementing environmental and social risks management systems (ESMS).