Transition To Sustainable Dev't Requires ESG Criteria Integration To Banking Institutions' Strategies - Official
Date
10/3/2024 7:10:07 AM
(MENAFN- Trend News Agency)
BAKU, Azerbaijan, October 3. Transition to
sustainable development requires an innovative approach and
integration of ESG criteria (environmental, social, and corporate
governance) into the strategies and business models of banking
institutions, the chairperson of the Central bank of Azerbaijan
Taleh Kazimov said at a roundtable discussion on "Creating the
Highway for Private Finance" at ADA University within the framework
of "Climate Action Week", Trend reports.
“The finance industry plays a key role in supporting sustainable
development, and today we are here to discuss how private finance
can contribute to this process. The issue of sustainable finance is
relevant both nationally and globally. We are at an important
juncture: on the one hand, we have a responsibility to support
economic growth, and on the other hand, our responsibility is to
protect the environment. This creates additional challenges for the
financial sector and the Central Bank, as it is necessary to take
into account climate risks and ensure financial stability,” he
said.
He noted that in 2023 the Central Bank of Azerbaijan approved a
new system of regulation of the financial sector, one of the key
elements of which was the introduction of green financial
taxonomy.
“We developed this mechanism to align the activities of
financial institutions with international standards. This year we
introduced new requirements for banks to manage climate risks and
incorporate sustainable development principles into their corporate
governance and financial strategies. The Central Bank of Azerbaijan
is actively working to support innovation in the financial sector,
creating conditions for the successful transition of the economy to
sustainable development models not only in Azerbaijan but also
internationally,” Kazimov added.
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